MUMBAI, July 17 -- Geopolitical tensions in West Asia and uneven southwest monsoon rainfall are the biggest risks to India's economy, Reserve Bank of India governor Sanjay Malhotra said Friday.

The warning comes as retail inflation accelerated to 4.38% in June from 3.9% in May, moving above the central bank's 4% midpoint target for the first time since the new consumer price index series was introduced in January 2026. Food inflation rose to 5.32% from 4.78% in May.

The economy is also expected to slow. According to the RBI, growth is likely to ease to around 6.6% in the April-June quarter from an upwardly revised 7.8% in the previous quarter. Full-year growth is expected at around 6.6%, compared with 7.7% in FY26.

Against that backdro...