Union Bank of India predicts inflation will rise from a low 2.3% in June to possibly over 4% by year-end.

Union Bank of India has lowered its 2025-26 inflation forecast to 3.6%, close to the RBI's 3.7% prediction. June's retail inflation is projected at 2.3%, with food inflation expected to drop to 3%, its lowest in seven years. Despite the current low inflation, driven by lower food prices, the bank predicts a gradual increase starting in August, potentially breaching the 4% threshold by year-end.