RBI Inflation FY2026-27: Malhotra & Co trim FY27 inflation forecast to 5% as easing crude prices offer relief
Economic Times 2 hrs ago·5 Aug 2026, 4:43 am
The Reserve Bank of India (RBI) has revised its outlook for inflation in the upcoming financial year. The central bank now expects headline inflation to average 5% for FY27, slightly lower than its previous projection of 5.1%. This adjustment comes as global crude oil prices have softened and supply-side bottlenecks are easing.
For investors, this news suggests that the RBI may have more room to maintain its current interest rate stance in the near term. While food and fuel costs remain key drivers of price pressures, the benign trend in core inflation provides some stability. The central bank anticipates that inflation will peak in the third quarter of FY27 before moderating.
Moving forward, market participants will closely watch the RBI's next policy meeting to see if this forecast influences any changes in the repo rate. Investors should also keep an eye on global crude oil trends and domestic food price movements to gauge the actual inflation trajectory.
Excerpt from Economic Times
RBI Inflation 2026-27 Forecast: The RBI's Monetary Policy Committee cut its FY27 inflation forecast to 5% from 5.1%, citing softer global crude oil prices and easing supply-side pressures. RBI Governor Sanjay Malhotra said higher inflation is largely driven by food and fuel, while core inflation remains benign. He…Read the original at Economic Times
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