CPI inflation had peaked at 7.8% in April 2022
Mumbai: The Reserve Bank of India (RBI) projected CPI inflation for FY25 at 4.5%. The RBI governor, Shaktikanta Das, said during the RBI MPC announcement that two years ago, around this time, when CPI inflation had peaked at 7.8% in April 2022, the elephant in the room was inflation. The elephant has now gone out for a walk and appears to be returning to the forest. We would like the elephant to return to the forest and remain there on a durable basis. In other words, it is essential for the best interest of the economy that CPI inflation continues to moderate and aligns with the target on a durable basis.
According to Shaktikanta Das, CPI inflation is predicted to drop to 3.8% by Q2FY25 before rising once more to around 4.5% by the end of the fiscal year.
