new Delhi. The Reserve Bank of India (RBI) is expected to prioritize growth over inflationary concerns in its April 2022 policy meeting.
Notably, consumer price index (CPI) inflation remained elevated in February due to higher than expected prices of vegetables.
In addition, inflation is expected to remain elevated on the back of higher crude oil prices in the months following the Russia-Ukraine crisis.
Motilal Oswal from Financial Services said, “Nevertheless, we still expect the RBI to prioritize growth in its April 2022 monetary policy meeting as we believe growth is still a bigger concern than inflation at present.” “
“We expect inflation to be in the range of 5.2 to 5.4 per cent per annum in FY22,” he said.
Earlier this month, CPI inflation hit an eight-month high of 6.1 per cent in February 2022.
Further, food inflation slipped to a 15-month high of 5.8 per cent in February 2022 from 5.4 per cent a month earlier.
“Within food, vegetables primarily drove inflation as the CPI, excluding vegetables, came in at 6.1 per cent, similar to the level seen in January 2022.”
“Other commodities such as cereals and products, meat and fish, spices and sugar and confectionery that weighed 17 per cent in the CPI index also contributed to higher inflation.”
In contrast, fuel and power inflation fell to a 10-month low of 8.7 per cent in February 2022.
Further, core inflation stood at 6.2 per cent year-on-year in February 2022 for the fifth consecutive month.
“Slightly higher inflation in housing and clothing and footwear was offset by marginally lower inflation in various commodities.”
—AnyTV News
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