Mumbai/IBNS, Aug. 5 -- The Reserve Bank of India (RBI) on Wednesday projected India's real GDP growth at 6.7 per cent and retail inflation at 5 per cent for the financial year 2026-27 in its latest Monetary Policy Statement.

Inflation rises above target after 16 months

Consumer Price Index (CPI) inflation rose to 4.4 per cent in June 2026, moving above the RBI's target after remaining below it for 16 consecutive months.

However, the central bank noted that inflation was 30 basis points lower than its earlier projection for the first quarter of FY27.

According to the RBI, the increase in inflation was driven primarily by higher food and fuel prices.

The rise in fuel costs also pushed up prices in certain services, including restaurant...