Reserve Bank of India: In the midst of rising inflation across the country, good news is coming out from the Reserve Bank of India. It is believed that this year there may be a decline in the inflation rate.
Inflation Rate 2023: In the midst of rising inflation across the country, good news is coming out from the Reserve Bank of India. It is believed that this year there may be a decline in the inflation rate. It is expected that everything from food and drink will be cheap. RBI’s Monetary Policy Committee (RBI MPC) member Ashima Goyal said on Sunday that inflation is expected to come down this year.
Inflation may come down throughout the year
He said a flexible inflation targeting regime as well as supply-side action has kept the rate of price rise low compared to other countries. Goyal said that India has successfully faced challenges in the last three years by showing great resilience. He said, “The inflation rate is expected to come down throughout the year.”
This was revealed in the interview,
he said in a telephonic interview with PTI that the government’s supply-side action along with the flexible inflation targeting system has kept the inflation rate low in India as compared to other countries. He was asked whether high inflation has become a normal situation in India.
Policy rates cut during the Corona period
He said that the policy rates were drastically cut during the pandemic, so they had to be increased rapidly after the revival. Goyal further added, ‘But due to lack of external demand, the policy rates should not increase much at present. Domestic demand should be allowed to compensate.
Reduced inflation forecast
The Reserve Bank of India (RBI) has increased its key repo rate by 2.5 per cent since May last year. RBI has reduced the inflation forecast based on consumer prices to 6.5 percent from 6.7 percent for the current financial year. India’s retail inflation was 6.52 percent in January.
What will be the effect on wheat crop?
What could be the effect of hot weather on wheat crop and food inflation? He said that the weather trend has become uncertain, so it is necessary to bring flexibility in agriculture. He said that work is being done in this direction. He said that risks remain due to geopolitical challenges.
