<h1>RBI Forecasts Retail Inflation Drop to 4.2% for 2025-26 Amid Good Crop Prospects and Global Risks</h1> The Reserve Bank of India (RBI) has projected retail inflation for the fiscal year 2025-26 at 4.2%, down from 4.8% for 2024-25. RBI Governor announced this during the last bi-monthly monetary policy meeting, attributing the expected decrease to good kharif production and favorable rabi crop prospects, which should ease food inflation pressures. Core inflation is anticipated to rise slightly but remain moderate. However, global financial market uncertainties, energy price volatility, and adverse weather events pose risks to inflation. The Economic Survey highlighted the need for climate-resilient crops to stabilize long-term food prices, noting significant contributions from vegetables and pulses to inflation.