New Delhi, June 13 -- According to a recent report by the Bank of Baroda (bob), India's retail inflation in the first quarter of FY26 is expected to undershoot the Reserve Bank of India's (RBI) forecast of 2.9 per cent.

The report suggested that the June 2025 high-frequency price data has also been comforting, offering further signs of price stability.

It said, "We expect CPI in Q1 to undershoot RBI's 2.9 per cent forecast as Jun'25 high-frequency price data is also comforting."

However, the report cautioned that inflation trends must be closely monitored, particularly regarding Tomato, Onion, and Potato (TOP) prices. Some buildup in these food items has been observed, although the increase remains gradual.

A significant relief in inf...