RBI issues 1st core inflation forecast 4.4% for fiscal 2026-27

Core inflation excludes food and energy

Core inflation helps the RBI see what's really happening with prices, without all the short-term spikes from things like veggies or petrol.
Most inflation-targeting countries focus on headline inflation because it is seen as a more representative measure of overall price conditions.
In India, food accounts for about 37% of the CPI basket. Lately, headline inflation was at 2.7% in January and 3.2% in February, as food prices started rising again after deflation in the previous four months.

The new core projection should help guide future decisions as these trends keep shifting.