Last Updated: September 30, 2022, 11:15 IST
The Reserve Bank of India (RBI) on Thursday retained its inflation projection for the financial year 2022-23 at 6.7 per cent. The Consumer Price Index (CPI)-based inflation has remained above the RBI’s upper tolerance limit of 6 per cent for eight straight months.
While presenting the latest bi-monthly monetary policy statement, RBI Governor Shaktikanta Das said, “Consumer price inflation remains elevated and above the upper tolerance band of the target due to large adverse supply shocks, some firming up of domestic demand, and the spillovers from global financial markets. The recent correction in global commodity prices including crude oil, if sustained, may ease cost pressures in the coming months.”
He added that the inflation trajectory remains clouded with uncertainties arising from continuing geopolitical tensions and nervous global financial market sentiments.
India’s retail inflation in August soared to 7 per cent, compared with 6.71 per cent in July. This comes after three months of the country’s retail inflation easing from its peak, following the Reserve Bank of India’s repo rate hikes since May.