The Reserve Bank of India (RBI) on Friday revised its inflation outlook for the current financial year, FY26, projecting Consumer Price Index (CPI) inflation at 2 per cent—down by 0.6 percentage points from its earlier estimate.

The announcement was made by RBI Governor Sanjay Malhotra while presenting the monetary policy.

He said, “Inflation is likely to be softer than what was projected in October, mainly due to the fall in food prices. Considering all these factors, CPI inflation for this year is now projected at 2 per cent, again about 0.6 per cent downwards from our earlier outlook.”

Headline CPI inflation fell to an all-time low in October 2025, driven by a sharper-than-expected correction in food prices, deviating from the usual seasonal trend seen in September and October.

Malh

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