India Inflation: While the Reserve Bank of India s rate-setting panel opted to maintain unchanged rates in its December meeting, Governor Shaktikanta Das expressed concerns about inflation, acknowledging its retreat from highs but noting its persistent volatility. External MPC member Jayanth Varma suggested that a stance might not be necessary, but if adopted, it should be neutral.
While consumer price index (CPI) -based inflation for FY24 is expected to be at 5.4 per cent, for the first three quarters of 2024-25 it is projected at 4.6 per cent, according to the ‘State of the Economy’ article published in the RBI’s December bulletin.
According to IMF s Nada Choueiri, strong push by the government in logistics and infrastructure could navigate the economy through global headwinds. The focus on digitalisation puts Indian on a strong platform towards growth and productivity in the future, she said.
Budget 2024-25: The government and RBI s fight against inflation is never-ending, given how food prices behave. While the Modi government has indeed tried to tame these prices, it now needs to do more