Monsoon shortfall pushes India's food inflation to 6% in FY27

Business Jul 03, 2026

India's food prices are expected to jump, averaging 6% inflation in FY27.
This spike is mainly because of a big monsoon shortfall (rainfall was down more than 40% this June), which has hit crops hard.
Edible oil prices have already climbed, reaching 9.5% inflation in May.

CPI inflation projected at 5%

Overall inflation (CPI) is projected to edge up to 5%.
While the non-oil trade deficit has grown, India's services exports and foreign direct investment are on the rise: FDI inflows shot up by 66%, and remittances jumped 70% in April.
The RBI and the government are working to steady the rupee with tax breaks and incentives; it's expected to hover around ₹92 to ₹93 per dollar over FY27.