RBI said in its report that the inflation rate in the current financial year will be 6.7 percent, while in the next financial year it will come down to 5.2 percent.
Inflation rate may come down to 5.2 percent in the next financial year
The Reserve Bank of India, through one of its reports, has projected the inflation rate to come down to 5.2 percent in the next financial year. Continuing high inflation rates continue to be an important policy concern for the Reserve Bank of India (RBI), but the pressure is likely to ease in the next financial year on the back of normal rains and easing of disruptions in global supply chains. This estimate has been expressed in a report of RBI.
Inflation rate will come under control
In this RBI report, it has been said that in the next financial year starting April 2023, the retail inflation rate will come under control and its level is expected to be 5.2 percent, but in the current financial year it is estimated to be 6.7 percent. In the monetary policy report September 2022, RBI has said that in the event of a normal monsoon, continuous removal of disruptions in supply chains and no other external or policy shocks, the inflation rate is expected to average 5.2 percent in the financial year 2023-24. .
Inflation rate may exceed 6 percent in January
Since January 2022, the inflation rate has remained above the RBI’s satisfactory upper limit (six per cent). Inflation hit an all-time high of 7.8 per cent in April, though it began to decline later, but remains at an unacceptably high level.
Rate hiked to control inflation
To control inflation, the RBI on Friday increased the policy rate repo by 0.5 percent to 5.9 percent. RBI has retained the inflation forecast for the financial year 2022-23 at 6.7 percent. It is expected to remain at around 6 per cent in the second half.