India's retail inflation may be at 5.7-6.9% in FY23, say economists

This is after duty cuts on fuel; 25-50 bps repo rate hike likely in the MPC meet next week

After hiking the repo rate by 40 basis points (bps) in its off-cycle decision, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) is likely to decide on the exact rate hike on the basis of its inflationary expectations at that point of time.

Retail inflation touched a near eight-year high of 7.79 per cent in April. This is a fourth straight month when the rate of price rise has been above the MPC's six per cent upper tolerance level.

On the other hand, wholesale price index (WPI) inflation zoomed to a series high of 15.1 per cent that month. Some