RBI Project Retail Sales Inflation at 5.1% in FY22- The New Indian Express

Through PTI

MUMBAI: The Reserve Bank of India on Friday projected retail price inflation at 5.1% for the current fiscal year ending March 31, 2022.

The projection is well within the Monetary Policy Committee’s target of keeping the inflation rate at 4 percent with an upper or lower tolerance level of 2 percent.

Presenting the second bimonthly monetary policy review, RBI Governor Shaktikanta Das announced that the repo rate – the rates on short-term loans to banks – would remain unchanged at 4%.

Given the actions taken so far as well as the upside risks, Das said CPI (Consumer Price Index) inflation is projected at 5.1% in 2021-2022.

This consists of 5.2% in the first quarter, 5.4% in the second quarter, 4.7% in the third quarter and 5.3% in the fourth quarter of this fiscal year, with broadly balanced risks, he said. declared.

According to Das, the upside risks to inflation stem from the persistence of the second wave of COVID and the resulting activity restrictions on a virtually pan-Indian basis.

“In such a scenario, isolating the prices of essential food items from supply-side disruptions will require active monitoring and preparation for coordinated, calibrated and timely measures by central and state governments to prevent the emergence of Supply side bottlenecks and increasing retail margins, ”the governor said.

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