New Delhi, Dec 15 || India’s retail inflation is expected to remain well under control in the third quarter of FY26, with headline CPI inflation likely to settle at 0.4 per cent, slightly lower than the Reserve Bank of India’s projection of 0.6 per cent, according to a report by Bank of Baroda on Monday.
The bank said easing food prices and stable core inflation have continued to provide relief to consumers despite some recent sequential rise in vegetable prices.
The report noted that CPI inflation continued to remain below the lower band of the RBI’s target range for the third consecutive month.
Retail inflation stood at just 0.7 per cent in November 2025, a sharp fall from 5.5 per cent recorded in November last year.
This came in even with a slightly unfavourable base effect and was lower than Bank of Baroda’s own estimate of 0.9 per cent.