RBI Projects Lowest Inflation in Recent Years

The Reserve Bank of India (RBI) has lowered its inflation forecast for the current fiscal year to 3.7%, a decrease from the previous estimate of 4%, citing stable core inflation and reduced international commodity prices.

RBI Governor Sanjay Malhotra announced, assuming normal monsoon patterns persist, CPI inflation is projected at 3.7% for FY2025-26, with specific quarterly estimates of 2.9% for June, 3.4% for September, 3.9% for December, and 4.4% for March.

Despite these positive forecasts, the RBI remains vigilant concerning weather-related risks and global tariff issues, while the current inflation remains below the 4% target for three consecutive months till April 2025.

(With inputs from agencies.)