New Delhi, July 13 -- With food prices lagging seasonal trends and driving headline Consumer Price Index-based retail inflation below 4 per cent since February 2025, Union Bank of India has revised downwards its 2025-26 headline inflation forecast from 4 per cent to 3.6 per cent (largely aligned with the RBI' forecast of 3.7 per cent).

The June retail inflation data is due early next week.

In a report, the bank said June 2025 retail inflation will be at 2.3 per cent, with the worst seems to be over for now. According to them, July figures would be the near-term bottom.

"...in our optimistic scenario, we project FY26 CPI at 3.1 per cent while pessimistic scenario forecast stands at 4.2 per cent. It is noteworthy that even in the pessimi...