RBI's inflation projections jump, growth numbers dip as recovery wobbles

While it termed current inflation as transitory, MPC also expects it to edge up to near-6% levels towards 2021-22 end, highlighting stickiness of inflation in uneven economic recovery

The phase of economic recovery may be characterised by dampened growth momentum, and could very well result in slow income growth, coupled with pricey goods and services, an analysis of successive inflation and growth projections by the Reserve Bank of India shows.

MPC’s consumer inflation projections for 2021-22 have surged considerably from the estimates in April, to its assessment in August 2021. In April, the central bank projected inflation to be at 5.2 per cent in Q2 (July to September). It was raised to 5.4 per cent in June, and has now been further raised to 5.9 per cent.

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