Inflation in the current financial year and the next financial year (FY27) is likely to be much lower than the Reserve Bank of India’s (RBI) projections, according to a report released by the State Bank of India (SBI) .

The report highlighted that several domestic factors are working in favour of easing price pressures. These include healthy progress of the monsoon, higher kharif sowing, adequate reservoir levels, comfortable buffer stock of foodgrains, and the most significant factor, GST rate rationalization.

Taking these into account, the RBI recently revised downwards its FY26 CPI inflation projection by 50 basis points to 2.6 per cent, which marks a steep 160 basis point cut from the levels projected in April.

However, the report that actual inflation in both FY26 and FY27 coul

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