Mumbai, May 29 -- The Reserve Bank of India (RBI) has expressed confidence in aligning headline inflation with its target of 4.0 per cent over a 12-month horizon, supported by easing food prices and favourable economic conditions.

The central bank's Annual Report, released on Thursday, said that inflation has already fallen below the target in February and March 2025, which has strengthened the outlook for a durable alignment with the inflation target.

"With inflation falling below the target in February and March 2025, supported by a sharp fall in food inflation, there is now greater confidence about a durable alignment of headline inflation with the target of 4.0 per cent over a 12-month horizon," the report said.

The headline inflat...