RBI Governor Sanjay Malhotra says retail inflation crossed 4% target
Inflation in India is creeping up, thanks to ongoing tensions in West Asia and a disappointing monsoon season.
Reserve Bank of India (RBI) Governor Sanjay Malhotra shared that retail inflation has crossed the central bank's 4% target for the first time in a year and a half, mainly because supply issues are making things costlier.
He also mentioned that while global oil prices have spiked due to disruptions at the Strait of Hormuz, their effect on Indian prices has been limited so far.
RBI keeps repo rate 5.25%
The weak monsoon, 23% below average, could hit crop yields and push food prices higher.
Since India imports nearly 90% of its oil, it's extra vulnerable to global supply shocks.
The RBI is keeping its repo rate steady at 5.25%, choosing to wait and watch as uncertainties continue.
India's GDP growth forecast for this year has been trimmed from 6.9% to 6.6%, reflecting these challenges.