Reserve Bank of India on Wednesday projected retail inflation at 4.6% for FY27, remaining within the government’s mandated target range of 4% with a tolerance band of +/- 2%.
Announcing the first bi-monthly monetary policy of the fiscal, Sanjay Malhotra said inflation trajectory remains manageable despite recent global uncertainties.
He noted that prior to the escalation of the West Asia conflict, India’s macroeconomic fundamentals were strong, supported by robust growth and relatively low inflation. However, conditions turned adverse in March due to the widening and intensification of the conflict.
On a quarterly basis, CPI-based retail inflation is projected at 4% in Q1, 4.4% in Q2, 5.2% in Q3, and 4.7% in Q4 of FY27.