![Inflation to reach Target in FY26: RBI’s State of the Economy Report Inflation to reach Target in FY26: RBI’s State of the Economy Report](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzhrYJ8rdUTJNizGxqz0s5WNLOfeSjLUrIUCs75MlWgJUDJeTTF099rnMmFOq4np0jZAfS-VcMB0NoZavCXtanpfe8Qk9J4YAVOLEcpjqvLWgJAniNqHLeRXnRSPOiRHb-hFEYAUZJ40-aIrhL40RyGNU9a9eJfqeEBexrZIm3G7efibN9HbcGZ1ZrJkIx/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(21).png)
- This alignment could recommence in the second half of FY25.
- It is expected to sustain until numbers closer to the target are seen.
- These closer numbers are anticipated to be observed during FY26.
- This means that the inflation rate is expected to reach the target of 4% in FY26.
- The RBI has projected the Consumer Price Index (CPI) inflation of 4.5 per cent in FY25, with Q1 at 4.9 per cent; Q2 at 3.8 per cent; Q3 at 4.6 per cent; and Q4 at 4.5 per cent.
- However, the prices of vegetables, cereals, pulses, meat, and fish in the food category may keep the headline elevated and closer to 5 per cent in the near term.
Question:
1. What is the target of headline retail inflation as per the RBI’s State of the Economy Report?
- A) 3%
- B) 4%
- C) 5%
- D) 6%