RBI Bulletin Update: According to RBI, domestic consumption is expected to increase in the second quarter of FY 2024-25 due to reduction in inflation rate and increase in demand in rural areas. In the bulletin released for the month of September, RBI said that the inflation rate has remained below its tolerance band for two consecutive months in July and August. In the bulletin, the Reserve Bank of India has projected the inflation rate to be 4.1 percent in the financial year 2025-26.
Food price risk remains
The Reserve Bank of India said in its bulletin issued for September 2024, the trend of decline in vegetable prices has started and if it continues further, then the concern about food inflation in the first quarter of the financial year 2025-25 may get relief. However, inflation is expected to remain high in the month of September due to the base effect in the inflation rate. But crude oil prices are also seeing a decline. Inflation is expected to be 4.5 percent in the second half of the current financial year 2024-25, which is according to the resolution passed in the RBI MPC meeting in August 2024. However, according to the RBI bulletin, the risk of fluctuations in the prices of food items remains.
Consumption and demand will increase due to reduction in inflation
According to the RBI bulletin, the inflation rate may be 4.1 percent in the financial year 2025-26, which is estimated to be 4.5 percent inflation in the current financial year 2024-25. RBI said in its bulletin that CPI inflation has remained below its target in August for the second consecutive month after July, which is a positive development. Retail inflation stood at 3.65 percent in August 2024. According to RBI, this will boost private consumption and consumption in rural areas will increase, which will increase private investment and this will accelerate economic growth. RBI has projected 7.2 percent GDP in the financial year 2024-25 in its bulletin.
Read this also
EPFO Update: Good news for EPF account holders and EPS pensioners! Modi government has given a series of gifts
