Mumbai, Oct. 1 -- The Reserve Bank of India (RBI) on Wednesday revised its inflation target for the current financial year to 2.6 per cent, marking a significant moderation from earlier projections.

In August policy as well, the inflation target was revised downwards to 3.1 per cent, down from 3.7 per cent projected in June.

Announcing the decision, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) observed that the overall inflation outlook has turned even more benign over the last few months.

He stated, "The average headline inflation for this year has been consequently revised lower from 3.7 per cent which was projected in June, 3.1 per cent in August, to now 2.6 per cent".

As per the RBI Governor, this i...