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Inflation UPSC NOTE

 RBI Assessment

  • A modest easing of headline inflation in the reading for April confirms the expectation that an uneven and lagged pace of alignment with the target is underway but a durable alignment with the targeted 4% inflation could recommence and sustain only in the second half of the financial year

  • The prices of vegetables, cereals, pulses, meat and fish in the food category may keep the headline [inflation] elevated and closer to 5% in the near term, in line with projections set out in the April MPC resolution in spite of deflation in fuel prices and further softening of core inflation to a new historic low

  • While statistical base effects may help pulling down the headline inflation in July and August, it is expected September may see a reversal. 

  • It is only in the second half of the year a durable alignment with the target may recommence  and sustain till numbers closer to the target are sighted during the course of 2025-26



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Inflation UPSC NOTE
Inflation UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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