Create Post
RBI MPC members vow to take battle against inflation ahead
India's headline retail inflation rate surged to 5.55 percent in November due to the combination of an unfavourable base effect and a rise in prices of key food items The members of the Reserve Bank of India's (RBI) monetary policy committee (MPC) vowed to take the battle against inflation ahead while deciding on a status quo in policy rates for the fifth consecutive time, according to the minutes of the MPC meeting released on December 22. "In the immediate months of November and December, a resurgence of vegetable price inflation is likely to push up food and headline inflation. We have to remain highly alert to any signs of generalisation of price impulses that may derail the ongoing process of disinflation," said RBI Governor Shaktikanta Das in minutes. RBI Deputy Governor Michael Debabrata Patra said households are already wary. Although they expect inflation to remain unchanged three months ahead, they are more unsure about this prognosis than they were two months ago. "Over the year ahead, however, they are more sure than in the past that inflation will likely rise. Consumers too reveal more pessimism about inflation a year ahead than when they were surveyed in September. Consequently, monetary policy has to remain on high alert with a restrictive stance," Patra said. India's headline retail inflation rate surged to 5.55 percent in November, according to data released by the Ministry of Statistics and Programme Implementation on December 12, thanks to the combination of an unfavourable base effect and a rise in prices of key food items. The Consumer Price Index (CPI) inflation print in October was 4.87 percent. At 5.55 percent, the latest CPI inflation figure is below expectations, with economists having predicted prices likely rose 5.8 percent year-on-year in November. The overall price index had fallen by 0.1 percent month-on-month (MoM) in November 2022, the period based on which last month's inflation number will be calculated. Source - Money Control
- 0
- 0
- ₹0
