People are upset due to the price of things getting expensive, now RBI officials said such a thing on inflation

Inflation is a big issue in the country. As inflation rises, so does it affect the pockets of the common people. Meanwhile, the Reserve Bank of India (RBI) has said that inflation remains high in the country. In view of this, there is a need for monetary policy to firmly restrain the apprehensions about the increase in inflation. The three-month-long decline in retail inflation stopped in August and rose to 7 per cent mainly due to higher food prices.

Inflation may rise

The Consumer Price Index (CPI)-based inflation has remained above the Reserve Bank’s satisfactory level of 6 per cent for the eighth consecutive month. RBI mainly takes into account the retail inflation rate while considering monetary policy. The article, written by a team led by RBI Deputy Governor Michael Debabrata Patra, said a slowdown in economic activity in the global economy could lead to a rise in inflation, which currently remains high.

Support economic growth

The article said that during the first quarter of the current financial year, there has been a slight slowdown in the level of economic growth, the Indian economy is moving towards exiting it. As per the article, the aggregate demand remains strong and is expected to increase with the commencement of the festival. Financial conditions at the domestic level are also supporting economic growth.

Next meeting will be held on this date

The central bank has clarified that the views expressed in the article are those of the authors and do not reflect the views of the Reserve Bank. Based on the recommendations of the Monetary Policy Committee headed by the RBI Governor, the central bank has increased the repo rate by 1.40 percent since May to control inflation. The next meeting of the Monetary Committee will be held from September 28 to 30, 2022.