The Reserve Bank of India on Friday said that the retail inflation is likely to remain elevated and pegged at 6.8 per cent for the third quarter ending on December 31, 2020. RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) is of the view that inflation is likely to remain at higher levels, excepting short time aid in the winter months from perishable prices.
However, retail inflation is likely to be projected at 5.8 per cent in the fourth quarter of the current fiscal year. While CPI inflation rose sharply to 7.3 per cent and 7.6 per cent in September and October, respectively unveiling its bi-monthly monetary policy review, he said. According to Das, with some evidence that the pressure of price is spreading, the outlook for inflation has adversely turned in relation to the expectation in the last two months.
“Taking into consideration all these factors, the CPI inflation is projected at 6.8 per cent for Q3 FY2020-21; 5.8 per cent for Q4 FY2020-21 and 5.2-4.6 per cent in H1 of FY2021-22 with risks broadly balanced,” Das said. The MPC has kept the key policy unchanged at 4 per cent for supporting growth and control in the inflationary pressures.