GST Reforms To Moderate CPI Inflation In Range Of 65-75 Bps Over FY26-27

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Since the GST rate of essential items (around 295 items) has declined from 12 per cent to 5 per cent/nil, the CPI inflation in this category may also come down by 25- 30 bps in FY26 after considering a 60 per cent pass through effect on food items.