RBI's policy decisions been in right direction, says Ashima Goyal

Headline retail inflation was at 6.71% in July; it was the first time in four months that the price gauge printed below 7%

The Reserve Bank of India’s (RBI’s) policy decisions to tame headline inflation has been in the right direction as it has approached the inflation originating from food price shocks pragmatically, said Ashima Goyal, external member of the monetary policy committee (MPC) that decides on the policy rates.

India’s retail inflation has been above the RBI’s upper tolerance limit of 6 per cent for eight consecutive months. In August, the retail inflation inched up to 7 per cent from 6.71 per cent in July driven by higher food prices, putting pressure on the central bank to further increase policy rates later this