RBI cuts FY27 inflation forecast to 5%, flags food and fuel risks
The RBI lowered its FY27 CPI inflation forecast by 10 basis points to 5.0% and held the repo rate at 5.25%. Food-price shocks, fuel volatility, rainfall disruption and higher input costs remain potential pressures on retail margins and consumer prices.
RBI cut its FY27 inflation forecast to 5% while holding the repo rate at 5.25%. Food, fuel, rainfall disruption, input costs and volatile oil prices remain risks that could raise retail operating costs and consumer prices.
Why this matters
The cut follows recent RBI signals holding the repo rate at 5.25%, raising the FY27 growth forecast to 6.7% and trimming inflation to 5%, reinforcing a policy stance balancing growth with price risks.
Retail-company signals are accelerating, up 206971% QoQ.