New Delhi, Sept. 13 -- Prices of everyday goods and services could start to come down in the coming days, as recent cuts in indirect taxes by the government begin to show their effect, according to a report by Bank of Baroda (BoB).

The report added that overall inflation (CPI) will likely settle at around 3.1 per cent in the financial year 2025-26, with a good chance it could go even lower.

"We may see episodes of disinflation in the coming days as government support through lower indirect tax rates is likely to be passed on to actual numbers sooner, if not later. We expect CPI in FY26 to settle at 3.1 per cent, with risks tilted to the downside," the report added.

Consumer inflation saw some relief in August 2025, mainly driven by a c...