{"id":51806,"date":"2024-04-05T08:02:25","date_gmt":"2024-04-05T08:02:25","guid":{"rendered":"https:\/\/earlypostdaily.com\/?p=51806"},"modified":"2024-04-05T08:02:28","modified_gmt":"2024-04-05T08:02:28","slug":"rbi-holds-fy25-inflation-forecast-at-4-5-amid-uncertainties-in-food-prices","status":"publish","type":"post","link":"https:\/\/earlypostdaily.com\/index.php\/2024\/04\/05\/rbi-holds-fy25-inflation-forecast-at-4-5-amid-uncertainties-in-food-prices\/","title":{"rendered":"RBI Holds FY’25 Inflation Forecast at 4.5% Amid Uncertainties in Food Prices"},"content":{"rendered":"\n

Mumbai, Apr 5 :<\/strong> The Reserve Bank stated on Friday that uncertainties in food prices continue to influence the inflation trajectory, even as it maintained a retail inflation projection of 4.5 percent for the current fiscal year.<\/p>\n\n\n\n

In its first bi-monthly monetary policy for the current fiscal, the RBI highlighted that despite the reduction in petrol and diesel prices in mid-March 2024, the recent rise in crude oil prices requires close monitoring. Ongoing geopolitical tensions also pose upward risks to commodity prices and supply chains, according to the RBI.<\/p>\n\n\n\n

“Assuming a normal monsoon, CPI inflation for 2024-25 is projected at 4.5 percent,” stated RBI Governor Shaktikanta Das.<\/p>\n\n\n\n

Although the RBI retained the full-year inflation projection, it adjusted the forecasts for the quarter. The RBI anticipates April-June quarter inflation at 4.9 percent and 3.8 percent in the September quarter. For the December and March quarters, inflation is projected at 4.6 percent and 4.7 percent, respectively.<\/p>\n\n\n\n

The RBI noted that deflation in fuel is likely to intensify in the near term following the reduction in LPG prices in March. Last month, the government announced a significant cut of Rs 100 in cooking gas LPG prices to alleviate the financial burden on households. Additionally, public sector oil retailers reduced petrol and diesel prices by Rs 2 per liter, ending a nearly two-year-long hiatus in rate revisions.<\/p>\n\n\n\n

“Food price uncertainties continue to weigh on the inflation trajectory going forward. A record rabi wheat production would help temper price pressure and replenish the buffer stocks. Moreover, early indications of a normal monsoon augur well for the kharif season,” the RBI remarked.<\/p>\n\n\n\n

While inflation has significantly decreased, it remains above the 4 percent target. Food inflation continues to exhibit considerable volatility, hindering the ongoing disinflation process.<\/p>\n\n\n\n

“Our ongoing effort is to ensure fuller transmission of policy actions and anchoring of household inflation expectations. The strong growth momentum, together with our GDP projections for 2024-25, give us the policy space to unwaveringly focus on price stability,” the RBI stated.<\/p>\n\n\n\n

The RBI is mandated to contain retail or consumer price index (CPI) inflation at 4 percent, within a band of +\/-2 percent.<\/p>\n\n\n\n

Governor Das emphasized the need for CPI inflation to continue moderating and aligning with the target on a durable basis for the economy’s best interest. In February, retail inflation stood at 5.1 percent, while inflation in the food basket was at 8.66 percent. For the 2023-24 fiscal year, the RBI has projected average retail inflation at 5.4 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mumbai, Apr 5 : The Reserve Bank stated on Friday that uncertainties in food prices continue to influence the inflation trajectory, even as it maintained a retail inflation projection of 4.5 percent for the current fiscal year. In its first bi-monthly monetary policy for the current fiscal, the RBI highlighted that despite the reduction in […]<\/p>\n","protected":false},"author":1,"featured_media":51807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54,22],"tags":[1032,3704,3702,73,1033,860],"class_list":{"0":"post-51806","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-latest-news","8":"category-national","9":"tag-earlypostdaily","10":"tag-food-prices","11":"tag-forecast","12":"tag-india","13":"tag-latestnews","14":"tag-rbi"},"_links":{"self":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/51806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/comments?post=51806"}],"version-history":[{"count":1,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/51806\/revisions"}],"predecessor-version":[{"id":51808,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/51806\/revisions\/51808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/media\/51807"}],"wp:attachment":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/media?parent=51806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/categories?post=51806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/tags?post=51806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}