India, June 6 -- The Reserve Bank of India (RBI) has lowered its forecast for inflation for the financial year 2025-26 (FY26), predicting it will now be 3.7% instead of the earlier estimate of 4%, RBI Governor Sanjay Malhotra said on Friday. This is expected to bring more relief to Indian households.

RBI's Monetary Policy Committee MPC said that inflation has come down and is likely to ease further in the financial year 2025-26, mainly due to better food supply.

Malhotra said, "While food inflation remains soft, core inflation is also expected to cool further going forward."

"The Indian economy presents picture of strength, stability and opportunity," he said. India is growing at a very fast pace and "aspire to grow at a higher rate," ...