New Delhi: India's retail inflation is expected to strengthen through the remainder of the current fiscal, driven by elevated fuel costs, higher input prices, a weaker rupee and weather-related risks to food prices, prompting the Reserve Bank of India (RBI) to closely monitor inflation before taking further policy action, according to a report by Crisil Ratings.
The report projects Consumer Price Index (CPI)-based inflation to average 5.1 per cent in FY27, sharply higher than 2.0 per cent in the previous fiscal, and sees the possibility of a 25 basis points rate hike in the second half of the fiscal year if inflationary pressures persist.
