Inflation ‘falling but certainly not going away’: RBI newsletter

MUMBAI: Title of India inflationary has expanded and become “stubborn”, Reserve Bank of India (RBI) said in the monthly newsletter on Tuesday.
“Inflation may ease slightly, but it is certainly inevitable,” the central bank said in a report.
Headline inflation is expected to pick up in the second quarter of the fiscal year starting next April after falling in the first three months of the year, the bank said.
India’s annual inflation rate fell to 5.88% in November, the first time below the upper threshold of the RBI’s 6% safety band this year.
According to the central bank’s estimates, annual inflation will slow to 5.9% in January to March next year and 5% from April to June 2023 but will rise to 5.4% in three months. next.
India’s central bank has a mandate to keep inflation at 4% over the medium term, within a comfortable 2% range on both sides.
To keep inflation closer to target, the RBI has raised the prime rate by 225 basis points since May 2022. The policy repo rate is currently at 6.25%.
RBI says short-term growth outlook for Indian economy supported by domestic drivers as reflected in high frequency economic indicators.
“Falling input cost pressures, still-rising corporate sales and rising fixed asset investments are heralding the start of the capital gains cycle in India,” it said. said more.


News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button