RBI's Upward Inflation Revision: Precious Metals Impact
The Reserve Bank revised its inflation projection upward for the current fiscal year to 2.1%, with the first two quarters of the next fiscal year at 4% and 4.2%, due to rising precious metal prices. Despite geopolitical uncertainties, core inflation remains stable, experts predict, amid bright food supply prospects.
- Country:
- India
The Reserve Bank has revised its inflation projection for the current fiscal year to 2.1%, influenced largely by higher prices of precious metals.
For the first and second quarters of the next fiscal year, the projection stands at 4% and 4.2%, respectively. Notably, core inflation remains stable at 2.6%, excluding gold.
RBI Governor Sanjay Malhotra emphasized geopolitical risks and volatility in energy prices as potential inflation challenges, yet pointed to optimistic food supply prospects.
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