Economists forecast inflation could hit 4.9% above RBI comfort zone
Business
Get ready for prices to climb: economists say inflation could hit 4.9% in FY27, more than double the previous fiscal year (FY26)'s 2.1%.
This spike is mostly thanks to rising oil prices, food costs, and ongoing global tensions.
The forecasted rate is above the RBI's comfort zone of 4%, so your money might not stretch as far.
Crude $95, El Nino, weaker rupee
Higher crude oil (now expected at $95 a barrel), El Nino weather messing with crops, and a weaker rupee are all adding pressure.
At the same time, India's GDP growth is expected to dip from 7.6% in FY26 to 6.6% in FY27, so things may feel a bit slower overall.
Even with these changes, the RBI probably won't hike interest rates just yet but could act later if inflation keeps rising.