Mumbai, Dec 05 The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday sharply lowered its inflation forecast for 2025–26 to 2% , revising it downward from the earlier estimate of 2.6%. The RBI said the drop reflects an unexpected and steep fall in food prices, along with the impact of recent GST rate cuts.

RBI Governor Sanjay Malhotra noted that headline inflation has eased more than anticipated and now appears set to remain softer in the coming months. He said food inflation has been unusually low, while improved kharif output, healthy rabi sowing, adequate reservoir levels, and favourable soil conditions have strengthened food supply prospects.

Malhotra added that core inflation — excluding food, fuel and precious metals — also stayed contained in September and Octo

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