India’s wholesale price index-based inflation accelerated to 0.53 per cent in March on an annual basis, as against 0.20 per cent in February, data from the Commerce Ministry on Monday showed.
Last week, India’s retail inflation data was released which showed that it eased to 4.85 per cent on an annual basis in March as against 5.09 per cent in the previous month.
RBI’s inflation forecast:
The Reserve Bank of India (RBI) in April MPC meeting left its inflation forecast for this fiscal year unchanged at 4.5 per cent and hinted at inflation target being in sight, even as the country braces for a scorching summer amid a spike in crude oil prices and persisting worries about supply chain due to the Red Sea crisis.
The central bank had characterized inflation as the prominent challenge, referring to it as “the elephant in the room.” Governor Das indicated optimism by suggesting that inflation (elephant) appears to be reverting to the desirable threshold (forest) of 4 per cent.
During his address, Governor Das remarked, “The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest.”
Das highlighted the downward trajectory of inflation, underpinned by favorable base effects. However, he acknowledged the persistent pressure from service prices which has sustained the key indicator at a heightened level compared to the stipulated targets.
