The consumer price-based index (CPI), or retail inflation, accelerated to 7.4 per cent in September from 7 per cent in August. CPI has been above the Reserve Bank’s tolerance band of 2-6 per cent since January 2022, resulting in a 190 basis points (bps) increase in repo rate since May this year.
The fight against inflation will be dogged and prolonged as the monetary policy operates with long and variable lags, the Reserve Bank of India (RBI) said in a report.
The consumer price-based index (CPI), or retail inflation, accelerated to 7.4 per cent in September from 7 per cent in August. CPI has been above the Reserve Bank’s tolerance band of 2-6 per cent since January 2022, resulting in a 190 basis points (bps) increase in repo rate since May this year.
“The fight against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates, and fraught with uncertainties,” the RBI said in its ‘State of the economy’ report.
“Yet, if we succeed, we will entrench India’s prospects as one of the fastest growing economies of the world enjoying a negative inflation differential with the rest of the world.” the RBI report said.
Source- THE INDIAN EXPRESS
