Reserve Bank of India (RBI) has released the March Bulletin. In this bulletin, an article titled ‘The State of Economy’ has indicated the decline in the inflation rate.
The article said that due to rising food prices, there is little chance of a decline in retail inflation. RBI had earlier set a target of a more than 4 per cent decline in retail inflation, which now seems distant.
Retail inflation based on the Consumer Price Index (CPI) has declined since December. Retail inflation in February 2024 was 5.09 per cent.
Let us tell you that this article has been written by the team led by RBI Deputy Governor Michael Debabrata Patra.
In This Article, It Was Said That
Even though inflation is on a downward trend with broad-based moderation in core inflation, repeated episodes of small-amplitude food price pressures prevent a rapid decline in headline inflation toward the 4 per cent target.
The article further states that the global economy is losing momentum, with growth slowing in some of the most resilient economies and high-frequency indicators pointing to higher levels.
In India, real GDP growth in the third quarter of fiscal year 2023-24 was at a six-quarter high. Strong momentum, strong indirect taxes and low subsidies drove this.
The article says that healthy corporate and bank balance sheets will drive growth in the future. The central bank said the views expressed in the bulletin article are those of the authors and do not represent the views of the Reserve Bank of India.
