Economy

Coronavirus | RBI sees inflation falling below 4 pc target by mid-FY21

RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das   | Photo Credit: PTI

RBI Governor Shaktikanta Das said the consumer price index based retail inflation has fallen by 170 bps from its January 2020 peak.

Reserve Bank of India (RBI) Governor Shaktikanta Das on April 17 said the inflation is on a declining trajectory and could fall below the central bank’s 4% target by the second half of this fiscal amid challenges posed by Covid-19 pandemic.

He said the consumer price index based retail inflation has fallen by 170 bps from its January 2020 peak.

“In the period ahead, inflation could even recede further, barring of course any supply side disruptions and may even settle well below the target of 4% by the second half of 2020-21,” the RBI Governor said in an early morning video conference.

Mr. Das added that such an outlook would make policy space available to address the intensification of risks to growth and financial stability brought about by Covid-19.

The retail inflation for March fell to a four-month low of 5.91% on cheaper food articles.

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Printable version | Jul 8, 2020 4:52:22 PM | https://www.thehindu.com/business/Economy/coronavirus-rbi-sees-inflation-falling-below-4-pc-target-by-mid-fy21/article31362920.ece

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