New Delhi, June 3 -- India's retail inflation is projected to climb to 5 per cent in the fiscal year 2027, driven primarily by surging food and energy prices, according to a report by ICICI Global Markets. The report also stated that core inflation is expected to remain anchored around 4.5 per cent during the same period, suggesting that the potential of El Nino might require some additional monitoring.

The projections follow a recent uptick in domestic price pressures. The report noted that India's retail inflation rose from an average of approximately 3.1 per cent during the January-March 2026 quarter to 3.48 per cent year-on-year (YoY) in April 2026. This increase was driven by a sharp rise in food inflation, which reached 4.2 per cen...