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Image Source : PTI RBI governor Shaktikanta Das
The monetary policy committe led by Shaktikanta Das has kept the repo rates unchanged at 6.50 per cent for the sixth straight time.
In December, Consumer Price Index (CPI) inflation, or retail inflation, increased, reaching a four-month high of 5.69 per cent. The increase was primarily attributed to the elevated prices of various food items, including pulses, spices, fruits, and vegetables. Comparatively, in November 2023, CPI inflation stood at 5.55 percent.
Despite this recent rise, headline inflation has managed to fall within the 2-6 percent range stipulated by the government for the Reserve Bank of India (RBI). However, it still exceeds the central bank’s target of 4 percent.
The RBI has projected CPI inflation for the fiscal year 2023-24 (FY24) at 5.4 percent, with expectations of 5.6 percent for the third quarter (Q3) and 5.2 percent for the fourth quarter (Q4). These projections indicate a cautious outlook on inflationary pressures, despite the recent fluctuations.
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