GK and monthly revision

RBI flags inflation risks, revises CPI outlook for FY27 upwards to 5.1%

The Reserve Bank of India (RBI) has revised its Consumer Price Index (CPI) inflation forecast for the fiscal year 2026-27 to 5.1%, primarily due to rising energy prices and uncertainties in food supply. Governor Sanjay Malhotra highlighted that increasing input costs, particularly from petrol and diesel price hikes, are expected to exert additional pressure on overall inflation. This adjustment is significant as it reflects the ongoing economic challenges and will influence monetary policy decisions.