The Reserve Bank of India (RBI) has updated its inflation outlook for the financial year 2026–27. The central bank’s Monetary Policy Committee (MPC) now expects inflation to be 4% in the first quarter and 4.2% in the second quarter, slightly higher than earlier projections.
The revision comes as a result of rising food prices, fluctuations in global commodities, and increasing service costs. Despite this, the projected inflation remains within the RBI’s comfortable target range of 2–6%, indicating a stable price environment.
For households, this may mean small increases in prices for essentials, while businesses might need to make minor adjustments to costs or pricing. Experts suggest that if supply issues ease and global prices stabilize, inflation could moderate in the second half of the year.
Overall, the RBI’s forecast reflects a careful balance between supporting economic growth and keeping prices under control, providing reassurance to consumers and businesses alike.