CPI inflation seen averaging 4% in FY26; monsoon, repo cuts to aid growth, says CRISIL

Crisil projects India’s consumer inflation to ease to 4% in FY26, driven by softer food prices due to a favorable monsoon and lower global commodity prices. This outlook may allow the MPC to cut the repo rate once more this fiscal year. While GDP growth is projected at 6.5%, risks remain from global factors and volatile capital flows.