Government data released a few days ago showed that inflation had fallen to a three-month low of 6.77 per cent in October. Prior to that, inflation stood at 7.04 per cent in the second quarter (July-September), down from 7.28 per cent in the first quarter (April-June).
While this trend would suggest that perhaps inflation has peaked, it needs to be pointed out that this is the 10th straight month that inflation has remained above the upper threshold of the Reserve Bank of India’s (RBI’s) inflation targeting framework. The RBI is mandated to keep inflation at 4 per cent (plus/minus 2 per cent).
No comments:
Post a Comment