Home/ News / India/  RBI to take necessary steps to keep inflation within expected limits: FM Nirmala Sitharaman

The 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.



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Updated: 20 Feb 2023, 12:27 PM IST
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