• UGI USER
  • Mar 20, 2024
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‘REPETITIVE FOOD PRICE PRESSURES DETER FALL IN INFLATION TOWARDS 4% TARGET’

Why in the news?

RBI’s March bulletin addresses inflation challenges amid easing trends, highlighting concerns over persistent food price fluctuations.

source:slideserve

About the Economic Analysis in RBI Bulletin:

  • RBI’s bulletin highlights ongoing inflation challenges despite easing trends.
  • Persistent food price fluctuations hinder swift decline towards the 4% inflation target.
  • Core inflation decreases, yet food price pressures offset the decline, maintaining higher inflation levels.
  • GDP growth expected at 7.4% for FY24-25, surpassing RBI’s projection of 7%.
What is Inflation?

●   Definition: Inflation is the rate of increase in prices over a given period, reflecting the rising cost of living.

●   Measurement: It encompasses overall price increases or for specific goods and services.

●   Indicators: Measured by indices like the Consumer Price Index (CPI) and Wholesale Price Index (WPI).

●   Policy Response: Addressed through monetary policy tools by central banks like the Reserve Bank of India (RBI).