Inflation is likely to follow downward trajectory in India: Shaktikanta Das
Inflation is likely to go down in the coming months and the impact of high inflation is already past its peak, Reserve Bank of India Governor Shaktikanta Das said Friday.
In an interview with Zee Business on September 2, Das said inflation is a global phenomenon and the globalisation of inflation has happened now.
"Considering the global situation, we can say that inflation reached its peak in India in April, but will now gradually come down,” added Das.
There will be some ups and downs but the trajectory would be mostly downward in the future, he said.
According to the RBI Governor, crude oil as well commodity and food prices have been softening.
He, however, refused to reveal the initiatives likely to be announced after the upcoming policy meet as situations keep changing.
India's inflation reached its peak in April 2022, when Consumer Price Index (CPI)-based inflation touched 7.79 percent, mainly pushed by rising fuel and food prices.
In April, the CPI inflation expanded at its highest pace in eight years but continued to fall after that.
It was 7.01 percent in June and went down to 6.71 percent in July.
RBI mainly takes into account the retail inflation figure while arriving at its bi-monthly policy decision.
Das said GDP growth in the first quarter has been less than RBI's predicted figures.
“We have identified some areas and will address them accordingly in the upcoming monetary policy after thorough study,” he explained.
The governor said growth has been slightly compromised in dealing with inflation, it has taken measures to minimise its impact on growth.