RBI Bulletin Update: The general public does not see any prospect of relief from inflation in this quarter. Inflation may average above 6 percent during the current quarter between July and September. RBI has said this in its monthly bulletin.
According to the bulletin issued by the RBI, the problems that have arisen in supply are not going away soon. In the first 15 days of August, prices of vegetables are also increasing. In such a situation, the inflation rate may remain above 6% in the second quarter of this financial year. This was written in the RBI Bulletin’s regular State of the Economy article, co-authored by RBI Deputy Governor Michael Patra. However, the views expressed by the author in RBI Bulletin are not considered to be the position of RBI.
On 10 August 2023, the RBI in its MPC meeting raised the inflation forecast for the current fiscal year to 5.4% from 5.1%. But according to statistics of the Ministry of Statistics on August 14, the rate of retail inflation has reached 7.44 percent. Thus, the rate of food inflation has been 11.51 percent. The reason for the increase in the price of food items is the rise in the prices of greens and vegetables including tomatoes. Therefore, during this period, the prices of wheat, rice and pulses also increased.
The RBI bulletin has also warned of the threat of El Nino in the second half of this year. Due to which the fear of inflation in Rabi season has been expressed. Along with this, the bulletin has also warned about the risk of price increase due to shortage of crude oil supply. In fact, Saudi Arabia has announced a reduction in crude oil production. Due to which crude oil prices have increased in recent days.
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(Tags Translation) RBI Bulletin (T) Inflation (T) El Niño