RBI report projects retail inflation within tolerance band by Q1FY24

Says persistent high inflation needs policy response

The fall in consumer price index (CPI)-based inflation to 6.7 per cent in July from 7 per cent in the previous month was a “heartening development”, and retail inflation may ease to 5 per cent by the first quarter of the next financial year before hitting the target of 4 per cent, the Reserve Bank of India’s state of the economy report said on Thursday.

The Monetary Policy Committee (MPC) of the RBI has been given the mandate to maintain annual inflation at 4 per cent, with a range of 2 per cent on both sides. CPI inflation had surged