BoB report sees CPI easing to 3.1% in FY26; GST cuts to soften prices further

Bank of Baroda projects retail inflation to average 3.1% in FY2025-26, potentially dipping lower due to GST cuts reflecting in prices. August 2025 saw consumer inflation at 2.1%, driven by falling food prices, with the food price index in deflation for the third month. Despite weather disruptions, vegetable supplies remain stable, and inflation stays within the RBI’s target band.