New Delhi, March 26 -- Rising energy costs are set to push India's retail inflation to 4.5 per cent in FY27 fiscal year, marking a shift in the domestic price landscape as the economy adapts to new weightage measures, as per an ICICI Bank report.

The Bank has revised the Consumer Price Index (CPI) upward from an earlier projection of 3.9 per cent. This adjustment comes as higher prices for petrol and diesel exert more pressure on the consumer basket than in previous years, despite recent stability in other sectors.

The report noted that India sees "credible success in managing inflation in FY26 with CPI inflation at 2.1% in the year," a figure that sits at the lower end of the official inflation band. However, changes in the structural ...