RBI raises FY27 inflation forecast to 5.2% on higher oil price projections

The Reserve Bank of India has revised its crude oil price projections for fiscal year 2026-27, resulting in an upward adjustment of inflation forecasts to 5.2%. The central bank attributed the revision to persistent supply pressures and volatility in international oil markets.

Rising crude oil imports have widened India's merchandise trade deficit, adding to macroeconomic concerns. The RBI's reassessment reflects growing uncertainty in global energy markets and their cascading impact on domestic inflation expectations for the coming fiscal year.