BofA’s Rahul Bajoria anticipates India’s headline inflation around 3%, with core inflation exceeding it at 4.2%. Improved supply and stable perishable prices are curbing food inflation, offering the RBI policy flexibility and boosting consumer spending. Bajoria expects the RBI’s FY26 inflation target to be 3.7%, aligning with their forecast. While monitoring monsoon impacts, they foresee controlled food inflation.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets