The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday raised its inflation forecast for FY27, marking a shift from the central bank’s earlier expectation of disinflation. CPI inflation projections for Q1 and Q2 of FY27 have been revised slightly upward to 4% and 4.2%, respectively. "The slight upward revision in the inflation outlook is primarily due to increase in prices of precious metals, which contribute about 60-70 basis points. The underlying inflation continues to be low," RBI said.