Print

RBI reduces inflation forecast to 3.7% for 2025-26

The Reserve Bank of India has revised its inflation outlook for 2025-26 downwards from the earlier forecast of 4 per cent to 3.7 per cent, said RBI Governor Sanjay Malhotra on Friday.

The RBI Governor pointed out that CPI headline inflation continued its declining trajectory in March-April, with headline CPI inflation moderating to a nearly six-year low of 3.2 per cent (year-on-year) in April 2025. This was led mainly by food inflation, which recorded the sixth consecutive monthly decline.

He said that fuel group witnessed a reversal of deflationary conditions and recorded positive inflation prints during March and April, while the core inflation remained largely steady and contained during March-April, despite increase in gold prices exerting upward pressure.

The outlook for inflation points towards benign prices across major constituents. The record wheat production and higher production of key pulses in the Rabi crop season should ensure adequate supply of key food items. Going forward, the likely above normal monsoon, along with its early onset augurs well for Kharif crop prospects.

He said, “Taking all these factors into consideration, and assuming a normal monsoon, CPI inflation for the financial year 2025-26 is now projected at 3.7 per cent, with Q1 at 2.9 per cent; Q2 at 3.4 per cent; Q3 at 3.9 per cent; and Q4 at 4.4 per cent.”

However, at the same time, Malhotra had a word of caution. “Notwithstanding these favourable prognoses, we need to remain watchful of weather-related uncertainties and still evolving tariff-related concerns with their attendant impact on global commodity prices,” he added.

(With inputs from IANS)

RELATED ARTICLES

3 hours ago | India Tanzania economic partnership

India–Tanzania trade crosses $9 billion as both sides deepen economic partnership

India and Tanzania have reaffirmed their commitment to expanding bilateral trade and economic cooperation, with trade between the two countries crossing the $9 billion mark in 2025–26.  The milestone was highlighted during the 5th session of the ...

5 hours ago | India-UAE CEPA

India-UAE CEPA driving strong trade growth, opening new opportunities: Piyush Goyal

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is driving robust trade growth and creating new opportunities for Indian businesses, Union Minister Piyush Goyal said on Friday. Four years after the implementation of CEPA, the econo...

6 hours ago | upi transaction

UPI sees 25% growth at 22.35 billion transactions in April, begins FY27 on a strong note

India’s digital payments ecosystem recorded a 25 per cent year-on-year growth in April, with UPI clocking 22.35 billion transactions. In value terms, transactions stood at Rs 29.03 lakh crore, reflecting a 21 per cent annual growth, according to da...