India’s Inflation to Stay Higher in FY27, Unlikely to be a Major Concern: Economic Survey

India’s Inflation rate—headline Consumer Price Index (CPI) and core CPI excluding precious metals are projected to remain higher in FY27 than in FY26, revealed the Economic Survey 2025-26 tabled in the Parliament on January 29, adding that it is unlikely to be a concern.

"The trajectory of core inflation will need to be closely monitored in the context of monetary policy easing and potential upward pressures from global base metal prices,” the survey said, indicating new CPI series having implications for inflation assessment and warranting careful interpretation of price dynamics.

According to reports, the CPI series will shift to a new 2024 base starting with the January print — due on February 12, with an updated consumption basket that includes more items and assigns a higher weight to non-food components. This is expected to help contain volatility related to food.

The Reserve Bank of India had revised downwards its inflation projection for FY26 in December 2025 to 2% from 2.6% projected earlier apart from revising upwards the forecast by 50 bps to 7.3%.

(This is a developing story.)