India's retail inflation hits 6‑year low of 2.8% in May
What's the story
India's retail inflation has dropped to a 75-month low of 2.82% in May, government data showed on Thursday. The figure is a decline from April's rate of 3.2%. This marks the fourth consecutive month that headline inflation has remained below the Reserve Bank of India's (RBI) mid-point target of 4%.
Forecast adjustment
RBI revises FY26 inflation forecast to 3.7%
In light of the latest data, the RBI has revised its inflation forecast for FY26 down to 3.7% from an earlier estimate of 4%. The central bank's decision comes as food inflation, which carries a high weightage in the consumer price index, has remained below 3% for three consecutive months.
Inflation outlook
Experts predict stable prices ahead
Experts expect a favorable monsoon and stable global commodity prices to keep inflation in check for the fiscal year. The government's recent decision to halve the basic customs duty on crude edible oil is also expected to ease price pressures. This is because imports account for nearly 60% of India's edible oil consumption.