SBI Ecowrap Report: Average retail inflation in January-March 2023 will be 4.7 percent.

New Delhi:

SBI Ecowrap Report: India's retail inflation rate is expected to be below RBI's tolerance range of 6 percent.

The retail inflation rate based on the Consumer Price Index will come down to 5 percent by March 2023.

SBI Research

(SBI Research) has said this in its latest Ecowrap Report.

It has been estimated in this report that the average retail inflation during January-March 2023 will be 4.7 percent.

According to the latest data released by the Ministry of Statistics on Thursday, the retail inflation rate in the month of December has been 5.72 percent.

During this period, there has been a slight decline in retail inflation as compared to the previous month.

The retail inflation in the country was 6.77 percent during the month of October and 5.88 percent in November.

Retail inflation in India remained above 6 per cent till October last year, well above the RBI's comfort zone.

At the same time, CPI-based retail inflation came down to a 12-month low of 5.72 percent in December 2022.

The SBI Research Report has been authored by Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India (SBI).

It added, "against the changing scenario, there is little expectation of further increase in the repo rate. The full impact of the increase in the repo rate is yet to be shown".

Let us tell you that RBI had already increased the key policy rate by 225 basis points to 6.25 percent from May 2022 to deal with rising inflation, which has been above the tolerance range for almost three quarters.

However, raising interest rates usually puts a brake on inflation.

Last year on December 7, the Repo Rate was changed. The Monetary Policy Committee (MPC) of RBI had increased the policy repo rate by 35 basis points to reduce inflation.

The next three-day monetary policy meeting of RBI is to be held on February 6-8.

In which the policy repo rate can be increased even further.

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