RBI Policy | Consumer price inflation likely to hover on 5.3% in FY24

Reserve Bank of India Governor Shaktikanta Das

The Reserve Bank of India (RBI) expects the headline retail inflation to average 5.3 percent in 2023-24, Governor Shaktikanta Das said on February 8.

In his address announcing the Monetary Policy Committee (MPC) decision to hike the repo rate by 25 basis points to 6.5 percent, the RBI governor also said the forecast for Consumer Price Index (CPI) inflation for the current year had been lowered by 20 basis points to 6.5 percent.

The central bank pegs the the next year's inflation forecast at 5 percent for April-June, 5.4 percent for July-September and for October-December, and 5.6 percent for January-March 2024.

Das said the inflation forecasts assume the price of India's crude oil basket at $95 per barrel.