India CPI-inflation remains anchored despite a pick-up in May, notes RBI Bulletin

According to Reserve Bank of India?s June bulletin, geopolitical tensions and trade disruptions persisted, despite the recent interim peace deal in West Asia. Amidst the challenging global environment, the Indian economy grew at 7.8 per cent in Q4:2025-26, supported by private consumption and fixed investment. High-frequency indicators during the first two months suggest sustained economic momentum in 2026-27. Despite a pick-up in May, CPI-inflation remained anchored. India?s external sector remained resilient, supported by FDI inflows and adequate foreign exchange reserves.

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