RBI Update: In the current financial year, retail inflation is estimated to be at the level of 6.5 percent.

New Delhi:

RBI Update: The Reserve Bank of India on Wednesday predicted retail inflation to soften to 5.3 percent in the next financial year 2023-24.

In the current financial year, retail inflation is estimated to be at the level of 6.5 percent.

The estimate for the current financial year is higher than the central bank's target of keeping it at a satisfactory level of four per cent with a margin of error of two per cent.

The Reserve Bank (RBI) said in the Monetary Policy Review (MPC) presented on Wednesday that retail inflation will come down in the next financial year due to low 'imported' inflation.

However, wholesale inflation still remains high.

Earlier, the Reserve Bank had estimated retail inflation to be at 6.8 percent in the current financial year.

The central bank has lowered its inflation forecast for the current financial year on the basis of a steep fall in vegetable prices and India's crude oil purchases at $95 per barrel.

Reserve Bank Governor Shaktikanta Das said, "Going forward, inflation will come down in 2023-24."

However, it will remain above four percent.

Inflation conditions will be influenced by uncertainties arising out of geo-political tensions, volatility in global financial markets, rise in non-oil commodity prices and volatility in crude oil prices.

The central bank said the low volatility of the Indian rupee against other currencies would reduce the pressure of 'imported' inflation.

Das said, "Inflation is estimated to be 6.5 percent in 2022-23 based on the assumption of India's crude oil purchase at an average of $ 95 per barrel."

If the monsoon is normal, the consumer price index based inflation will be 5.3 percent in 2023-24.

It will be 5 percent in the first quarter, 5.4 percent in the second, 5.4 percent in the third and 5.6 percent in the fourth quarter.

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