‘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). |