New Delhi, Nov. 12 -- India's retail inflation is expected to undershoot RBI's target (2.6 per cent) in the current fiscal 2025-26, Bank of Baroda said in a report on Wednesday, as the country's Consumer Price Index reported a record low in October.

Dipanwita Mazumdar, a Bank of Baroda Economist, said they forecast CPI inflation for the year at 2.4-2.5 per cent, "with risks tilted to the downside".

However, one needs to be watchful of the unseasonal rains in major (Tomato, Onion and Potato) TOP-producing states, the economist cautioned.

"The arrival statistics till date haven't reflected any strain of the same," the report read.

CPI inflation is at 0.3 per cent for October 2025 compared to 6.2 per cent in October 2024, on a year-on-ye...