RBI Projects Favorable Inflation Trajectory with Q4FY26 at 4.2%

The Reserve Bank of India unveiled its quarterly inflation projections, forecasting Consumer Price Index (CPI) inflation at 3.8% for Q3FY26, followed by a slight uptick to 4.2% in Q4FY26. This outlook comes as part of the central bank's broader projection of 4.2% inflation for the entire fiscal year 2025-26. The estimates reflect the RBI's confidence in maintaining price stability, supported by moderating food prices and effective monetary policy transmission. This forecast aligns with the central bank's historic decision to cut the repo rate by 25 basis points, marking its first reduction in five years.

Source: Reserve Bank of India