New Delhi, Feb. 13 -- India's inflation outlook appears favourable, with the possibility of aligning with the Reserve Bank of India's (RBI) 4 per cent target in the coming months, highlighted a report by Bank of Baroda.

The report noted that a seasonal decline in food prices, particularly in vegetables, along with better supply management policies, has contributed to a lower Consumer Price Index (CPI) inflation rate.

It said "If volatile items of CPI especially vegetable inflation continue to play in favour, alignment to the inflation target seems feasible. Our forecast also looks at progressive alignment to the 4 per cent level".

The report stated that headline CPI inflation in January has benefitted from the seasonal correction in fo...