As per the Monetary Policy Statement, 2025-26, the Consumer Price Index (CPI) inflation for the financial year 2025-26 is projected at what percentage?​

Correct option is A

The correct answer is (a) 4.0%.

Explanation:

• RBI's Projection: The Reserve Bank of India (RBI) has projected the CPI inflation for the financial year 2025–26 at 4.0%, with quarterly estimates as follows:

  • Q1: 3.6%

  • Q2: 3.9%

  • Q3: 3.8%

  • Q4: 4.4%

• Assumptions: These projections assume a normal monsoon, favorable agricultural output, and stable global commodity prices.

• Policy Implications: The RBI's inflation target aligns with its medium-term objective of maintaining inflation at 4% within a flexible band of ±2%.

Information Booster:

• Recent Inflation Trends: Headline CPI inflation declined to a nearly six-year low of 3.2% in April 2025, driven by falling food prices and subdued core inflation.

• Monetary Policy Actions: In response to easing inflation, the RBI reduced the repo rate by 50 basis points in June 2025, bringing it to 5.5%.

• Economic Outlook: The RBI projects real GDP growth for 2025–26 at 6.5%, with quarterly estimates ranging from 6.3% to 6.7%.