Bank of Baroda warns India inflation likely 5% by FY2027
Heads up: everyday prices in India are expected to keep rising, with retail inflation likely hitting 5% by fiscal year 2027, according to Bank of Baroda.
The main culprits are higher food and energy costs.
The report also points out that unpredictable weather from El Nino could make things worse by hurting crop yields.
Food inflation, wholesale prices rise
Food inflation has already jumped from 3.2% earlier this year to 4.2% in April, and wholesale prices hit a more-than-three-year high at 8.3% (in April 2026).
Global spikes in energy and fertilizer prices, plus extreme heat, are making things tougher.
To help out, the government has raised Minimum Support Prices for farmers and boosted wheat procurement, but if the monsoon falls short, prices for essentials like pulses and oilseeds could climb even more.