Page 2 of Dow Jones Industrial

India’s retail inflation rose to 3.93% in May, with food prices being the main contributor. The RBI has raised its inflation projection for the current fiscal to 5.1%, while economists predict an average of 5-6% in FY27. The impact of higher fuel prices on inflation will be closely monitored, and the RBI may refrain from a hawkish stance if core inflation remains anchored.