New Delhi, June 13 -- India's retail inflation is expected to rise after December this year and average around 4.5 per cent in the next financial year (FY27), according to a new report by ICICI Bank.

The report highlighted that despite a near-term increase in vegetable prices during the monsoon months, overall inflation will likely remain under control until the end of 2025, helped by a high base and better food output.

It said "CPI inflation is seen remaining below 4 per cent until end-Dec, after which it is seen rising because of a low base and perhaps a negative supply impulse".

The report also revised its inflation projection for the current financial year (FY26) to 3.3 per cent, lower than its earlier estimate of 3.6 per cent.

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