Mumbai: The Reserve Bank of India (RBI) has revised inflation forecast for the current financial year 2024-25. RBI Governor Shaktikanta Das announced this after the Monetary Policy Committee (MPC) meeting of the apex bank. The RBI announces its monetary policy bi-monthly — every two months.
The Reserve Bank of India (RBI) has raised its retail inflation forecast for FY25, to 4.8% from the previous estimate of 4.5%. This adjustment comes amid persistent food price inflation, which is expected to remain elevated in the short term.
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‘Inflation increased sharply in September and October 202421 led by an unanticipated increase in food prices… In the near term, despite some softening, lingering food price pressures are likely to keep headline inflation elevated in Q3,’ RBI Governor Shaktikanta Das said in the policy statement.
The central bank forecasts CPI inflation for 2024-25 at 4.8 per cent, with Q3 at 5.7 per cent; and Q4 at 4.5 per cent. CPI inflation for Q1:2025-26 is projected at 4.6 per cent; and Q2 at 4.0 per cent.
The apex bank also revised downwards the GDP growth projection for the current financial year 2024-25 to 6.6 per cent, compared with 7.2 per cent earlier. It comes after the latest Q2 GDP growth slowed to a seven-quarter low of 5.4 per cent.
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