CPI inflation to average 4 pc this financial year: Crisil

Rating agency Crisil, in its latest research report, said that the consumer price index (CPI)-based inflation is expected to average four per cent this financial year, as compared to 4.6 per cent last fiscal.
The agency said that food inflation is expected to be softer given the forecasts of above-normal monsoon by the Indian Meteorological Department (IMD).
Non-food inflation is expected to be subdued on the back of lower commodity prices, the report said.
CPI is the key measure used by the Monetary Policy Committee (MPC) of the RBI for targeting inflation.
According to Crisil, GDP growth is seen at 6.5 per cent with downside risks.
The tariff moves by the US are seen as a risk for exports, while domestic factors like an adequate monsoon and repo rate cuts will be supportive of growth, the agency said.
The MPC had cut the repo rate by 50 basis points at its June meeting, bringing it down to 5.5 per cent.