Even as inflation is easing, the repetitive incidence of short amplitude food price pressures deters a swifter fall in headline inflation towards the target of 4 per cent, an article published in the Reserve Bank of India’s (RBI) monthly bulletin said on Tuesday. The monetary policy needs to guide inflation to the 4 per cent target, while ensuring that the momentum of growth is sustained, it said. As per the in-house model, the gross domestic product (GDP) growth is likely to remain robust at 7.4 per cent during the financial year 2024-25 (FY25), the article said. This estimate is higher than the RBI’s projection of the real GDP growth for FY25 at 7 percent. “Inflation is on the ebb; the steady decline in core inflation would have taken down headline inflation towards the target of 4 per cent even sooner and faster, but for the repetitive incidence of short amplitude food price pressures,” the ‘State of the Economy’ article published in the RBI’s March bulletin said. (ICE NEW DELHI)

Fonte notizia: The Indian Express