RBI Monetary Policy meeting: The Reserve Bank of India (RBI) maintained its 4.5% inflation projection for 2024–2025 with Q2 at 4.1%, Q3 at 4.8% and Q4 at 4.2%. The CPI inflation for the first quarter of the next financial year 2025-26 is projected at 4.3%. The risks are evenly balanced, said Governor of the RBI, Shaktikanta Das today.
RBI Governor Shaktikanta Das noted that there was a significant decrease in headline inflation in July and August, mainly due to the base effect in July. Food inflation showed some correction during these two months, but there were notable differences within the various food subgroups. The fuel group experienced deflation due to lower electricity and LPG prices, while core inflation increased in July and August. It is anticipated that the CPI for September will show a substantial increase because of unfavourable base effects and a rise in fuel prices.
Retail inflation in September likely to see big jump due to unfavourable base, pick up in food price momentum, highlighted RBI Governor Shaktikanta Das in RBI October monetary policy.
