Inflation will soon be on a downward trajectory in India: RBI Governor Shaktikanta Das – Moneycontrol

Reserve Bank of India (RBI) Governor Shaktikanta Das said inflation is likely to go down in the coming months in India and the impact of high inflation is past its peak.

“Inflation has become a global phenomenon. The globalisation of inflation has happened now,” Das said in an interview with Zee Business on September 2.

“Considering the global situation, we can say that inflation reached its peak in India in April, but will now gradually come down,” added Das.

According to the RBI governor, there will be slight ups and downs in the coming months, but the trajectory will be mostly downward in future. “There are various reasons why inflation will be on a downward trajectory. Firstly, crude oil prices are coming down. Commodity and food prices have also softened,” he added.

Fluid situation

Das, however, refused to comment on initiatives that could be declared after the upcoming policy meeting. He said it would be difficult and also wrong to give any forward guidance in terms of monetary policy as the situation keeps changing.

India’s inflation reached its highest level in April 2022, when Consumer Price Index (CPI)-based inflation touched 7.79 percent. The CPI went down to 6.71 percent in July from 7.01 percent in June. It was the first time since April 2022 that retail inflation had fallen below the 7 percent level.

Addressing growth concerns

Das stated that the growth has been comparatively low in the first quarter and much below the figures the RBI had predicted. This would be addressed in the upcoming policy meeting, he said. “We have identified some areas and will address them accordingly in the upcoming monetary policy after thorough study,” he explained.

The central bank governor said that even if growth has been slightly compromised in terms of dealing with inflation, the RBI has taken measures to minimise the impact on growth.