Inflation likely to align with RBI's projection in Q1: Bank of Baroda report

Bank of Baroda's report anticipates inflation aligning with RBI's FY26 projections, particularly in Q1, driven by a favorable statistical base and deflation in essential commodities. The BoB Essential Commodities Index showed deflation in June 2025, led by price drops in vegetables and pulses. This provides the RBI with flexibility to prioritize growth-oriented measures in the near term.