On April 5, the Reserve Bank of India (RBI) maintained its projection for the Consumer Price Index (CPI) inflation for the current fiscal year (FY25) at 4.5%.
The CPI has stayed within the RBI’s tolerance range of 2-6% for the past six months. Governor Shaktikanta Das announced that the RBI’s monetary policy committee (MPC) voted 5:1 to keep the benchmark interest rate unchanged at 6.5% for the seventh consecutive meeting.
Governor Das highlighted that robust growth prospects provide room for policy measures aimed at achieving the 4% inflation target. The MPC has decided to remain focused on transitioning away from its accommodative stance.
In February, India’s retail inflation slightly decreased to 5.09% compared to 5.1% in the previous month. Food inflation witnessed upward pressure during February. Governor Das emphasized that the MPC remains vigilant regarding the potential inflationary risks.
Additionally, core CPI has steadily declined over the past nine months, reaching its lowest level in the series.
The CPI, which measures retail inflation, tracks changes in the prices of commonly purchased consumer goods and services such as food, housing, clothing, transportation, electronics, healthcare, and education.
