You are here: Home » Economy & Policy » News
Business Standard

Inflation trajectory may be benign going forward, says SBI report

The Reserve Bank of India has raised the repo rate by 140 basis points to 5.40 per cent since May to tackle high inflation

Topics
Indian Economy | Inflation | retail inflation

Bhaskar Dutta 

inflation
Upside risks to domestic inflation increased significantly after Russia’s invasion of Ukraine in late February led to a spurt in global commodity prices

India’s trajectory going forward is expected to be benign with headline potentially printing at less than 5 per cent in March 2023, State Bank of India said in a report on Thursday.

“CPI (consumer price index) numbers for March 23 could be even lower than 5 per cent, if July CPI numbers are closer to 6.5-6.6 per cent, a likely possibility,” SBI’s Group Chief Economic Adviser Soumya Kanti Ghosh wrote.

India’s CPI has remained above the upper band of the RBI’s mandated 2-6 per cent range for six straight months up to June 2022. The June inflation print was at 7.01 per cent. The RBI’s medium-term target for CPI inflation is 4 per cent.

Upside risks to domestic inflation increased significantly after Russia’s invasion of Ukraine in late February led to a spurt in global commodity prices.

The Reserve Bank of India has raised the repo rate by 140 basis points to 5.40 per cent since May to tackle high inflation. The central bank has projected CPI inflation at 6.7 per cent in the current fiscal year and at 5 per cent in the first quarter of 2023-24 (April-March).

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, August 11 2022. 23:44 IST
RECOMMENDED FOR YOU
.