RBI to Lower Inflation Target for FY26 in Aug MPC: Report

The Reserve Bank of India (RBI) is expected to revise its inflation target downward for the financial year 2025-26 in the upcoming August MPC (Monetary Policy Committee) meeting, according to a recent report by CareEdge Ratings.

- AGENCIES NEW DELHI

The report highlighted that the Consumer Price Index (CPI) inflation may average around 3.1 per cent in FY26, significantly below the RBI's current projection of 3.7 per cent. For FY27, inflation is expected to remain higher at around 4.5 per cent, due to the low base effect from FY26.

It stated, "MPC to Lower Inflation Target...CPI inflation to average around 3.1 per cent in FY26. Given the low base of FY26, we expect average CPI inflation to be higher, around 4.5 per cent in FY27".