New Delhi, July 14 -- India's consumer price inflation (CPI) is likely to average around 5 per cent in FY27, with the Reserve Bank of India (RBI) expected to maintain a prolonged pause in interest rates as a stable rupee and improving foreign inflows help keep broader price pressures under control, according to an SBI Research report.

The report said inflation is expected to remain elevated during the middle of the fiscal year before easing later in the year. It projected CPI inflation at 5.1 per cent in the second quarter, 5.7 per cent in the third quarter and 5.1 per cent in the fourth quarter, resulting in an annual average of 5 per cent for FY27.

Highlighting the importance of external factors, the report said, "Understanding the im...