The Reserve Bank of India (RBI) has sharply revised its FY26 CPI inflation projection to 2%, down from the earlier estimate of 2.6%, signalling a more favourable inflation outlook for the coming year.
Announcing the revised estimate, RBI Governor Shaktikanta Das said the inflation trajectory has continued to soften, supported by easing commodity prices, stable food inflation, and improving supply-side conditions.
The Governor added that the disinflation trend, combined with strong GDP growth, places India in a rare “Goldilocks period” of balanced economic expansion.
This update comes alongside other key projections, including the RBI’s upgraded FY26 real GDP growth estimate of 7.3% and expectations of 7% growth in Q3 FY26, reflecting the central bank’s confidence in sustained macroeconomic stability.
