Inflation to drop to 3.5% in FY26: Crisil

Business Aug 13, 2025

Good news for your wallet: India's inflation is expected to drop to 3.5% in this financial year (April 2025-March 2026), down from last year's 4.6%.
Crisil credits this improvement to better kharif sowing—up by 4% as of August—which should help keep food prices in check.

Retail inflation hit record low last year

Retail inflation hit just 1.55% in July 2025, the lowest since 2017, and food prices actually fell—giving a break to lower-income families.
With oil prices staying steady and the Reserve Bank of India already cutting rates by a full percentage point, things are looking up for spending power.
The RBI now expects inflation around 3.1% next year, which could mean steadier prices and more room for growth ahead.