RBI Warns of Near-Term Price Pressures Amid Global Volatility

Governor Sanjay Malhotra told the media that short‑term inflationary spikes are still possible because of erratic global conditions. While the headline inflation rate rose to 4.4 percent in June after a prolonged period of sub‑target readings, core inflation stayed at 3.9 percent, showing that input‑cost shocks have been relatively contained. The RBI’s quarterly projections for FY27 anticipate a modest rise in the second quarter (4.7 percent) followed by a stronger third‑quarter pace (5.9 percent) and a slight easing to 5.5 percent in the fourth quarter. The bank highlighted ongoing vulnerabilities, including the impact of the El Niño weather phenomenon, fluctuations in crude oil markets, and geopolitical tensions, all of which could affect price stability.