Reserve Bank of India Governor Shaktikanta Das makes a statement digitally.
Highlight
- RBI today raised the inflation forecast for the current fiscal to 6.7% from 5.7% in April
- RBI Governor Shaktikanta Das said, the risk of inflation remains
- Higher global crude oil prices will exert upward pressure on inflation
RBI Inflation News UpdatesThe Reserve Bank of India (RBI) on Wednesday (June 8) raised the inflation forecast for the current fiscal to 6.7 per cent from 5.7 per cent forecast in April.
RBI Governor Shaktikanta Das said inflation risks remain and the recent rise in tomato prices will boost food inflation. In addition, higher global crude oil prices will exert upward pressure on inflation.
The upward revision in inflation forecast comes as domestic retail inflation has remained above the RBI’s comfort level of 6 per cent for four consecutive months, mainly due to the Russo-Ukraine war that affected commodity prices across the globe. Is.
In the bi-monthly monetary policy, Das raised the inflation forecast for the current fiscal to 6.7 per cent.
It estimated inflation at 7.5 per cent in the June quarter (Q1) and 7.4 per cent in the September quarter (Q2).
Inflation may decrease in December:
Inflation is expected to decelerate to 6.2 per cent in the December quarter (Q3) and further decelerate to 5.8 per cent in the March quarter (Q4) of the current fiscal.
Das said a normal southwest monsoon will boost kharif sowing and agricultural production. However, the global geopolitical situation remains fluid and the commodity market remains on an edge.
RBI Prediction:
The RBI, in its monetary policy in April, had projected inflation at 5.7 per cent in the current fiscal, against 6.3 per cent in Q1; 5.8 percent in the second quarter; 5.4 percent in Q3 and 5.1 percent in Q4.
The rise in prices of all commodities from fuel to vegetables and cooking oil pushed wholesale price inflation to a record high of 15.08 per cent in April and retail inflation to an eight-year high of 7.79 per cent.
RBI reserves the right to keep inflation at 4 per cent, with a bias of 2 per cent on either side.
(with PTI inputs)
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