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Indias Retail Inflation Set to Undershoot RBI Target as Oct CPI Hits Record Low: BOB Report

Bank of Baroda projects FY2025-26 CPI inflation at 2.4–2.5%, below RBI’s 2–6% target, after October CPI hits a record low. Risks include unseasonal rains hitting TOP crops (tomato, onion, potato). RBI’s policy stance remains cautious, awaiting Q4 data before any rate move, with GST effects cited as a drag on inflation.

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