Retail inflation steadily easing, food prices still a concern: RBI bulletin [Read More]

According to the RBI Bulletin published in June 2024, retail inflation in India is gradually easing, although volatile and elevated food prices are hindering the path of disinflation. \r

The article on the "State of the Economy" noted resilient global growth in Q1 2024, prompting many central banks to adopt a less restrictive monetary policy stance in response to declining inflation. High-frequency indicators suggest that India's real GDP growth in Q1 FY2024-25 is maintaining momentum. \r

The RBI, mandated to keep retail inflation around 4% with a margin of 2% on either side, recently kept the policy repo rate unchanged at 6.50% to support growth while aligning inflation with targets.