What RBI's letter to govt on missing inflation target is likely to contain

Failure to keep inflation between 2-6% for three straight quarters will require RBI Governor to explain to FinMin why target was missed, and steps MPC will take to achieve it going forward

The Reserve Bank of India expects consumer price index-based inflation to average around 6.7 per cent in FY23, with April-June quarter at 7.5 per cent, July-September at 7.4 per cent, October-December at 6.2 per cent; and January-March at 5.8 per cent.

With January-March FY22 headline retail inflation averaging 6.34 per cent, that would make it four consecutive quarters when inflation has breached the Monetary Policy Committee’s medium-term inflation target of 4 (+/-2) per cent.

As per the RBI Act, failure to keep inflation within 2-6 per cent for three consecutive quarters will require the RBI Governor to write to