RBI keeps retail inflation forecast at 5.4%: CPI inflation rose in Nov & Dec due to surging food prices

Disinflationary Policy

• Broad-based easing in core inflation
• Consumer inflation fell to 4.87% in Oct from 7.4% in July
• Inflation remains above 4%
• Elevated global sugar prices

Mumbai: Reserve Bank of India (RBI) on Friday retained the retail inflation projection for the current fiscal at 5.4 per cent, but said inflation may see an uptick in November and December due to pressure on food prices.

“Going ahead, the inflation outlook would be considerably influenced by uncertain food prices. High-frequency food price indicators point to an increase in prices of key vegetables, which may push CPI inflation higher in the near term,” said RBI Governor Shaktikanta Das.

Retail or consumer price index-based CPI inflation moderated to 4.9 per cent in October from 7.4 per cent in July.