RBI projects 5.1% FY27 inflation, flags fuel and monsoon risks
Business
The RBI said inflation should stay at 5.1% for fiscal 2027, which is within its comfort zone.
But there is a catch: rising global fuel prices and unpredictable monsoons could push costs higher.
Inflation has already ticked up this spring, mainly because food is getting more expensive.
RBI holds rates amid fuel spike
Petrol and diesel have jumped by 7.4% and 8.4% since May, and that alone is set to nudge inflation up even more in the coming months.
The RBI also pointed out that conflicts in West Asia and shaky supply chains could make things trickier, so it is keeping interest rates steady for now while watching how things play out.