Statsguru: RBI's Monetary Policy Committee stares at a tough decision

The Monetary Policy Committee of the Reserve Bank of India (RBI) could see itself in a fix when it meets in June. While on the one hand, this will be the first meeting under a new government, on the other, inflationary pressures are likely to overpower growth concerns if the past trends hold true.

Under the current government, the consumer food price inflation (CFPI) rate steadily declined from 6.4 per cent in FY15 to near price stagnation in FY19, Chart 1 shows. Core inflation, which excludes fuel and food from headline inflation, however, remained sticky. But now, headline inflation, which had