<h1>Ratings firm cuts 2025-26 headline CPI forecast to 3.2%, notes 140bps moderation and room for a 25bps rate cut</h1> A ratings research firm projects headline CPI inflation at 3.2% for 2025-26, down from a prior 3.5% estimate, implying a 140 basis-point moderation this fiscal year and creating room for monetary easing; the central bank may cut policy rates by an additional 25 basis points. The firm links lower inflation and easing rates to potential domestic demand support amid global headwinds. It flags excessive kharif-season rains as a downside risk that could disrupt production in key horticulture and foodgrain regions, noting food inflation is rising from low levels but still lags headline inflation.