The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday lowered its inflation forecast for FY27 to 5% from 5.1% projected in its June meeting, reflecting recent softening in global crude oil prices and easing supply-side pressures.
Quarter-wise, it expects inflation at 4.1% in Q1 (down from 4.2% earlier), 4.7% in Q2 (revised from 5.1%), 5.9% in Q3 (unchanged), and 5.5% in Q4, slightly higher than the earlier estimate of 5.4%. The central bank said risks to the inflation outlook remain evenly balanced, with headline inflation expected to peak in the third quarter before moderating thereafter.The RBI also lowered its FY27 core inflation forecast to 4.3% from 4.7% projected earlier.
