RBI MPC Lowers CPI Inflation To 5%, Says El Nino Continues To Be A Major Risk
Sakshi Arora | August 5, 2026 1:11 PM CST
The Reserve Bank of India revised its inflation outlook for FY27 on Wednesday. After deciding to keep the repo rate unchanged, the RBI Monetary Policy Committee projected consumer price inflation to hit 5 per cent for FY27.
The central bank warned that elevated crude oil prices, developing geopolitical tensions, and supply-side risks could keep inflationary pressures elevated.
In the previous June 2026 policy, the MPC projected CPI at 5.1 per cent for FY27.
Meanwhile, the MPC also updated its quarter-wise projections to reflect the evolving macroeconomic environment.
The revised inflation projections are:
Q2 FY27:4.7 per cent (Earlier: 5.1 per cent)
Q3 FY27: 5.9 per cent (Earlier: 5.9 per cent)
Q4 FY27: 5.5 per cent (Earlier: 5.4 per cent)
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