A new report from ICICI Bank Global Markets forecasts Indian inflation to reach 5.0% in fiscal year 2027, with core inflation at 4.6%. This increase is attributed to growing risks associated with geopolitical tensions in West Asia and fluctuating global fuel prices. Consequently, the report anticipates the Reserve Bank of India will likely implement interest rate hikes of 50 to 75 basis points to manage inflationary pressures. The analysis suggests that persistent food and fuel price volatility will be key drivers of this upward trend. These projections indicate a challenging economic landscape for India in the coming years, requiring proactive monetary policy adjustments. The report provides a detailed outlook on the factors influencing India’s inflation trajectory and the potential policy responses.