Research and ratings firm Crisil said that the headline inflation during 2025-26 is projected to be 3.2 per cent, lower than its earlier estimate of 3.5 per cent. In its latest report, Crisil said that the moderation implies a decline of 140 basis points in CPI inflation during this financial year, which is likely to give space for monetary easing. It said the RBI may cut rates by another 25 basis points this year. According to Crisil, lower inflation and reduced interest rates should increase domestic demand in the economy as global headwinds mount. The report also said that the excessive rains during the kharif season is a risk as it could cause disruptions in key horticulture and foodgrain-growing regions like Punjab which is facing its worst floods in four decades. CPI inflation inched up to 2.1 per cent in August 2025, from 1.6 per cent in July, moving above the RBI tolerance threshold of two per cent. Food inflation has started to move up from low levels but trails the head
Consumer inflation, as measured by the annual change in the Consumer Price Index (CPI), rose to 2.10 per cent in August from 1.55 per cent in July
India's services PMI rose to 62.9 in August, the steepest expansion since 2010, driven by strong demand, new orders, and resilient job creation amid rising costs
Economists back headline CPI as India's inflation target, stressing food's heavy weight in consumption and urging RBI to retain the 4% benchmark with the current tolerance band
What the revision of a three-decade-old inflation index may mean for rural wages
The trend-inflation rate has hovered close to the target, except mostly in times of excess volatility, and the credibility of the central bank has visibly strengthened
All the six members of the MPC unanimously decided to keep the policy repo rate unchanged at 5.5 per cent while maintaining the "neutral" stance
Stock Market Close Highlights, August 13, 2025: The BSE Sensex settled 304.32 points or 0.38% higher at 80,539.91 levels, while Nifty50 ended 131.95 points or 0.54% higher at 24,619.35 levels.
August MPC: RBI cuts FY26 inflation forecast to 3.1% on easing food prices, favourable monsoon; growth outlook steady at 6.5%, CRR cut to begin in September
Goldman Sachs lowered India's economic growth forecast after Donald Trump imposed a 25 per cent tariff
A significant drag comes from the private banking sector, which is expected to report its second consecutive quarter of declining earnings since March 2020
While price stability remains the central bank's primary objective, growth is also a key consideration
The ongoing geopolitical tensions are unlikely to put a "significant pressure" on the rupee or inflation as global energy prices are lower than last year, which will limit current account outflows and domestic energy price pressures, S&P Global Ratings said on Tuesday. S&P Global Ratings Economist Vishrut Rana said a key mitigating factor of India is that energy prices are still lower than last year --? Brent crude oil traded at roughly USD 85/barrel a year ago and current prices are still lower. "This will help contain both current account outflows and domestic energy price pressures -- while energy prices may rise moderately, the path of food prices will have a higher impact on inflation. Overall, we do not expect significant pressure on the Indian rupee or inflation," Rana told PTI. Rates of the benchmark Brent crude fell to around USD 69 a barrel after US President Donald Trump announced that Israel and Iran have agreed to a "complete and total ceasefire". Israel and Iran .
The latest monetary policy has also gone for a 50-basis-point rate cut, double the anticipated reduction
WPI inflation eased to 0.39 per cent in May, a 14-month low, as prices of food, fuel, and primary articles cooled; core inflation also declined
Cereal prices rose by 4.77% in May 2025, a slight moderation from April's 5.35% rise. Prices of pulses dropped 8.22%, following a 5.23% decline in April
RBI which targets inflation in the middle of its 2-6 per cent range in the medium term, also shifted its policy stance to 'neutral' from 'accommodative'
The policy, according to U R Bhat, co-founder & director, Alphaniti Fintech shows the RBI's confidence in inflation and other macro variables
With inflation expected to rise back to above 4 per cent by Q4-FY26, the Monetary Policy Committee has capitalised upon the available headroom to frontload rate action
India’s inflation numbers are finally giving our wallets a breather—and there’s more good news possibly on the way. Are there more RBI rate cuts on the way? Watch the video to find out.