Advertisement
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Airports play a much bigger role than just enabling travel -...
Why does the same hotel brand operate multiple properties in...
The Reserve Bank of India has projected retail inflation at 4.6% for the current financial year, keeping it within the official target range. The central bank maintained the repo rate at 5.25% while highlighting growing global uncertainties, especially due to the West Asia conflict. Quarterly inflation is expected to vary between 4% and 5.2%, with risks emerging from energy prices and weather-related disruptions. While core inflation remains stable, supply-side pressures and geopolitical developments continue to pose challenges to the overall inflation outlook and economic stability.
The Reserve Bank of India has projected retail inflation at 4.6% for the current financial year, keeping it within the government's mandated target range of 4% with a tolerance band of +/- 2%. The estimate reflects a relatively stable price environment, although emerging risks continue to be closely monitored. Advertisement
The inflation outlook was shared by RBI Governor Sanjay Malhotra while announcing the first bi-monthly monetary policy of the fiscal. He indicated that before the escalation of the West Asia conflict, India's macroeconomic conditions were strong, supported by steady growth and controlled inflation. However, the situation turned challenging in the past month as the conflict intensified and expanded geographically.
As per the central bank's projections, consumer price index-based inflation is expected to remain moderate across the year, with estimates of 4% in the first quarter, 4.4% in the second, 5.2% in the third, and 4.7% in the fourth quarter. This trajectory suggests a temporary rise in inflation during the middle of the year before easing towards the end.
The Monetary Policy Committee noted that global uncertainties have increased significantly since its previous meeting. The Governor indicated that while headline inflation remains under control and below the target, there are growing upside risks. These are mainly linked to rising energy prices and possible weather-related disruptions that could impact food supply and prices.
Core inflation, which excludes volatile food and fuel components, continues to remain subdued. However, the RBI flagged concerns around supply chain disruptions and the possibility of second-round effects, which could influence price levels over time and make the inflation path less predictable.
The central bank also highlighted that the economy is currently facing a supply-side shock. In this context, the Monetary Policy Committee chose to adopt a cautious approach and kept the repo rate unchanged at 5.25%. This decision reflects a wait-and-watch stance as policymakers assess evolving global and domestic conditions before making further adjustments.
Recent data showed that retail inflation rose to 3.21% in February, based on the updated consumer price index series with 2024 as the base year. Despite this increase, inflation has largely remained within the RBI's comfort range.
The government continues to mandate the RBI to maintain inflation at 4%, with a permissible variation of 2% on either side, reinforcing the central bank's focus on price stability alongside economic growth.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
