RBI Projects 5.4% Inflation for FY24, Governor Das Emphasizes Disinflationary Policy
The Reserve Bank of India (RBI) projects a 5.4% inflation rate for the fiscal year 2023-24, in line with overall estimates. Governor Shaktikanta Das underscores the continuation of a disinflationary monetary policy, emphasizing that the targeted 4% inflation remains elusive while headline inflation displays volatility.
The Reserve Bank of India (RBI) has forecasted an inflation rate of 5.4% for the fiscal year 2023-24, aligning with overall estimates. RBI Governor Shaktikanta Das has asserted that the monetary policy will persist in its disinflationary approach. However, he noted that the targeted 4% inflation has not been achieved yet, and headline inflation continues to exhibit volatility.
#WATCH | RBI Governor Shaktikanta Das says, "...CPI (consumer price index) inflation is projected at 5.4% for the current year 2023-24, with Q3 at 5.6% and Q4 at 5.2%. CPI inflation for Q1 of 2024-25 is projected at 5.2%, Q2 at 4% and Q3 at 4.7%. The risks are evenly balanced." pic.twitter.com/euzW21089n — ANI (@ANI) December 8, 2023
India's Struggle with Inflation: In July, India confronted persistent inflation concerns, primarily fueled by surging vegetable prices. The escalation of key commodity prices, including cereals, spices, and pulses, has added to the overall inflationary pressures.
Previous MPC Press Conference: During the preceding Monetary Policy Committee (MPC) press conference, Governor Das highlighted a softening trend in core inflation, registering at 4.9% during July-August 2023. Looking ahead, he projected Consumer Price Index (CPI) inflation at 5.4% for the fiscal year 2023-24, with specific quarter-wise estimates: 6.4% for Q2, 5.6% for Q3, and 5.2% for Q4. Governor Das emphasized a balanced risk outlook. For the first quarter of the fiscal year 2024-25, CPI inflation is projected at 5.2%, providing a comprehensive view of the central bank's inflation expectations in the upcoming quarters.
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