Inflation in India is predicted to come down from 6.8% in the present fiscal year ending March 31 to 5% the next fiscal year, dropping further to 4% in 2024, the International Monetary Fund (IMF) said.

As per the World Economic Outlook update by the IMF on Tuesday, around 84% of nations are expected to have lesser consumer price index inflation in 2023.

Inflation worldwide is set to fall from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024, beyond pre-pandemic levels of about 3.5%.
The projected disinflation partly imitates lessening international fuel and non-fuel commodity prices amid weaker global demand. It also imitates the cooling effects of monetary policy narrowing on original Inflation globally, expected to decay from 6.9% in FYQ422 to 4.5% by FYQ423.

Still, disinflation is likely to take time. By 2024, projected annual average headline and core inflation will, respectively, still be above pre-pandemic levels in 82 per cent and 86 per cent of economies, it said.

In radical economies, annual average Inflation is probable to decay from 7.3% in 2022 to 4.6% in 2023 and 2.6% in 2024, beyond the target in some cases. In evolving markets and developing economies, likely annual Inflation decays from 9.9% in 2022 to 8.1% in 2023 and 5.5% in 2024, above the 4.9% pre-pandemic average, the IMF held.

In less-income developing countries, Inflation is expected to be modest, from 14.2% in 2022 to 8.6% in 2024, high but near the pre-pandemic average.