RBI to take necessary steps to keep inflation within expected limits: FM Nirmala Sitharaman
1 min read 20 Feb 2023, 12:19 PM ISTRBI is watching the Indian economy and taking a call as and when it is required, FM Nirmala Sitharaman said
PremiumThe Reserve Bank of India (RBI) will take necessary steps to manage inflation within "expected limits,' Finance Minister Nirmala Sitharaman said in a post budget industry event in Jaipur on Monday.
"In emerging markets, the situation is unique to each of the countries. In that I think, RBI is watching the Indian economy and taking a call as and when it is required," Sitharaman said.
India’s consumer price index (CPI) or retail inflation accelerated to a three month high in January, reverting to over the RBI's upper tolerance band of 6% after a gap of two months, led by a spike in food prices and elevated prices in the non-food segment, official data showed earlier this month. Core inflation, which is non-food, non-fuel inflation remained over the 6% mark at 6.2% in January.
With the exception of November and December 2022, retail inflation has remained above the RBI's upper tolerance level of 6% since January 2022. The retail inflation based on the Consumer Price Index (CPI) was 5.72 per cent in December and 6.01% in January 2022. The previous high was 6.77% in October.
The central bank has projected retail inflation lower at 6.5% for FY23 from 6.7%; 5.3% for the next fiscal. The RBI mainly looks at retail inflation to frame monetary policy.
“The global economic outlook doesn't look as grim now as it did a few months ago, growth prospects in major economies have improved while inflation is on a descent though inflation still remains well-above the target in major economies.. Core inflation remains sticky. Non-food credit growth was 16.7% from the year ago period as of Jan 27, 2023. We have to remain unwavering on bringing down CPI," RBI Governor Shaktikanta Das had said in the February policy meeting.
