RBI MPC meeting: inflation to reduce to 4.2 % in the 26th fiscal year, the central bank says

On Friday, the Indian Reserve Bank (RBI) expected inflation to reduce it to 4.2 percent in the coming fiscal year, supported by favorable conditions such as the production of good crops and ease in vegetable prices.
For the current fiscal year ending in March, the Central Bank expected the consumer price index to be enlarged by 4.8 percent on the assumption of natural monsoon winds. MPC, led by Sanjay Malhotra, expects inflation by 4.5 percent in the first quarter of the fiscal year 2025-26, 4 percent in the second quarter; 3.8 per cent in the third quarter; And 4.2 per cent in the fourth quarter.
“Little, you should see the stress of food inflation, absent from any side shocks in supply, greatly softening due to good autumn production, winter breakdown in vegetable prices and favorable Rabi crop prospects. The basic inflation is expected to rise but remains moderate,” mentioned. Inflation reached the upper limit of 6.2 percent in October 2024, but in November and December of that year it was reduced due to the low prices of vegetables, as the Central Bank indicated at the first monetary policy committee (MPC) this year. Inflation in the fourth quarter of the current fiscal year has been linked by 4.4 percent.
However, the Central Bank advised to beware of the increasing uncertainty in the global financial markets “in addition to continuous fluctuations in energy prices and harmful weather events” that may pose risk of inflation.
RBI reduced the rate of 25 basis points to 6.25 % – the first reduction in nearly five years.