RBI Bulletin: India's Inflation Still Elevated, May Need Monetary Policy Response
ABP NewsIndia’s inflation may still require a monetary policy response going forward as it remains above the target range even though it has eased in recent months, the Reserve Bank of India said in the monthly bulletin released on Thursday. The RBI said, “Inflation has edged down, but its persistence at elevated levels warrants appropriate policy responses to anchor expectations going forward.” India's consumer inflation dipped to 6.71 per cent in July, easing for the third month in a row and helped by a slower increase in food and fuel prices but it remained above the RBI's 2 per cent to 6 per cent tolerance band for a seventh straight month. "Imported inflation pressure points remain the overarching risk, followed by pending pass-through of input costs if producers regain pricing power, and wages," RBI mentioned. According to the monthly bulletin, a “heartening development” in recent times has been the easing of inflation in July by 30 basis points from June and an “appreciable” 60 basis points from the average of 7.3 per cent for April-June 2022.