Retail inflation, calculated on the basis of Consumer Price Index (CPI), has been above the RBI’s upper bound infl ation target of 6 per cent for more than 11 months.
In the Monetary Policy Committee (MPC) meeting in December 2020, the RBI Governor Shaktikanta Das projected CPI infl ation at 6.8 per cent for December quarter and 5.8 per cent for March quarter of the current fi scal (FY21).
The said inflation is predicted to hover in the range of 4.6 per cent to 5.2 per cent with risks continuing to be broadly balanced.
Inflation rate