"Overall, the second-round effects of food and fuel inflation on headline have become subdued, especially after the adoption of flexible inflation targeting (FIT) in India," says the apex bank.
Think tank’s projections align with FinMin’s estimates, which recently said the outlook for a reasonably “low headline inflation rate is good”
Retail inflation falls to 7.02% in rural areas from 7.63% in July, while it drops to 6.59% in urban areas from 7.20% in previous month
Global supply chains are under pressure, which along with rising global commodity prices have contributed to “multi-decadal high inflation” in 2022, says Shaktikanta Das
Decline in wholesale inflation rate was supported by ease in prices of basic metals, food products, textiles, non-food articles, crude petroleum & natural gas products
Govt says the decline in wholesale inflation is contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, food products
Between Apr 2022 till Feb 2023, the spread between the Fed funds rate and the RBI's repo rate of cumulative increases has now declined to 192 bps, which has been constant since Dec 2022.
Emerging markets appear more resilient than in the year gone by, but the biggest risks in 2023 stem from US monetary policy, US dollar, says RBI in Jan bulletin.
CPI-based headline inflation falls to a one-year low; remains below the RBI’s upper threshold of 6% for the 2nd month in a row.
WPI data comes two days after the country’s headline inflation was recorded at an 11-month low of 5.88% in November 2022.
