RBI MPC meeting: Inflation to ease to 4.2% in FY26, says central bank

India (RBI) has predicted inflation for 4.2 percent in the next fiscal year, which stems in favorable conditions, such as good production of harvest and vegetable prices.
At the end of the current financial year, the Central Bank predicted CPI inflation by 4.8%, which implies a normal monsoon. Sanjay Malhotra-LED MPC predicted inflation by 4.5% in the first quarter of the second quarter, 4% in the second quarter; At 3.8 percent in Q3; and at 4.2 per cent on Q4.
“Going forward, the pressure of food inflation is missing from the side shocks of any supply, it should be significantly softened due to good production of Kharif, the winter relief is favorable at plant prices and the rabby harvest. stated. Inflation in October 2024, in October 2024, he gave a 6.2 percent upper limit, but in November and December of that year relieved due to the fall of vegetable prices. The fourth quarterly inflation of the current fiscal year was angry with 4.4%.
However, the Central Bank has caused caution against increasing the uncertainty in the global financial markets, “compounded by the continuous instability of energy prices and unfavorable weather events, which can progress the risks in inflation.
RBI reduced the RBI’s interest on 6.25%, the first first reduction in about five years.