Inflation expected to remain higher than RBI tolerance level till Dec: Shaktikanta Das

New Delhi, June 24: India’s headline inflation is expected to remain higher than the Reserve Bank of India (RBI) upper tolerance level of 6 per cent till December 2022, RBI Governor Shaktikanta Das has said.

“Until December, CPI inflation is expected to remain higher than the upper tolerance level; thereafter it is expected to go below 6 per cent as per our current projections. There will be inflationary pressures, and only in the fourth quarter, we have projected it to go below 6 per cent,” Das said in an interview with the Times of India newspaper.

RBI Governor said inflation is currently the biggest challenge confronting most economies in the world.
“As far as challenges are concerned, inflation is definitely the biggest challenge confronting most countries. Almost all market economies are confronted with mounting inflation, which is a problem that worries governments and central banks worldwide. The current surge in our inflation is primarily because of global factors. From April onwards we have been taking rate actions to effectively deal with rising inflation,” he said.

As per the RBI monetary policy review announced earlier this month, Consumer Price Index (CPI) based retail inflation is projected to remain 7.5 per cent in the first quarter of the current financial year. In the second quarter, it is projected at 7.4 per cent. For the third quarter, it is projected at 6.2 per cent.