Inflation momentum on downward slope, RBI projections robust: Guv Das

RBI Governor Shaktinakta Das on Monday said the central bank’s retail inflation outlook for FY23 was quite “robust” and that the “momentum of inflation is on a downward slope” and the RBI will continue to strike a delicate balance between the need to contain price rise and ensure economic growth.

Das was speaking at a media briefing in New Delhi, along with Finance Minister Nirmala Sitharaman.

He was asked about the RBI’s inflation projections in the backdrop of high crude oil prices.

“When you do inflation projection, you assume a crude price for the whole year, a particular price and a range of prices. If you take $95 a barrel and make a projection for the entire year you will definitely go wrong. It may go up further and come down steeply,” Das said.

“We have made our inflation projections based on many factors that can be anticipated and foreseen as of today. At this point of time, our inflation projections are quite robust,” he said. The central bank has projected average CPI inflation of 4.5 percent in FY23.