Key Points
Indias central bank today left its inflation forecast for this fiscal year unchanged at 4.5% and hinted of inflation target being in sight, even as the country braces for a scorching summer amid a spike in crude oil prices and persisting worries about supply chain due to the Red Sea crisis...
RBI Governor and MPC Chair Shaktikanta Das two years ago, around this time, when CPI inflation had peaked at 7.8% in April 2022, the elephant in the room was inflation..
The elephant has now gone out for a walk, and appears to be returning to the forest...
In February, India's retail inflation remained largely unchanged at 5.09% compared with 5.10% owing to higher food prices that sparked economists to believe that the policy rate-setting panel will leave key rates unchanged in April..
"High and persistent food inflation could unhinge anchoring of inflation expectations which is underway," Das said.. "While low core inflation provides comfort, the uncertainty on food inflation remains a worry," said Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank...
