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<h1>RBI Lowers FY2026 Inflation Forecast to 4% on Strong Agricultural Output and Falling Crude Prices</h1> The Reserve Bank of India has lowered its fiscal year 2026 inflation projection to 4%, citing good agricultural output and falling crude prices. Consumer Price Index inflation declined 1.6 percentage points from December 2024 to February 2025, with food inflation dropping to a 21-month low. The central bank expects a durable softening in food inflation due to robust crop arrivals and record wheat production, while remaining vigilant about potential global and weather-related risks.