New Delhi . In a new research report of SBI, it has been said that even after the increase in interest rates by the Reserve Bank of India, it will take time for the inflation rate to normalize in the country.
The report said that in view of the continuous increase in inflation, it is almost certain that the RBI will increase the interest rates in the June and August meeting also. RBI will take it to the level of 5.15 percent before the corona epidemic by August.
The report said that the fear of rising inflation will remain and there is little chance that it will be controlled soon.
SBI studied the impact of the ongoing war between Russia and Ukraine on inflation in rural and urban areas of the country. In the research, the month of February was taken as the base month. This war started only in February.
The research showed that food and beverages and transportation contributed 52 percent of the war-caused inflation.
The report said that if the impact of the war on cost price is also added to this, especially in the FMCG sector, the contribution of this war to inflation would increase to 59 percent.
The report said that the challenge before the RBI is whether inflation can be controlled only by increasing the interest rates without ending the war.
The SBI research report also expressed concern that the rate hike by the RBI would hamper the pace of economic growth while the fear of inflation would remain the same.
Significantly, in April, the retail inflation rate was recorded at 7.79 percent.
—AnyTV News
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