Mumbai: The Reserve Bank of India (RBI) raised its inflation projection for the current fiscal year. The apex upped the projection to 6.7%. RBI Governor Shaktikanta Das updated this after the meeting of monetary policy committee (MPC) of the apex bank.
RBI also forecasted the inflation rate at 7.5% in first quarter of the current fiscal. For the second quarter, it is expected to be at 7.4%, while for the third quarter it is to be at 6.2% and in the fourth quarter, it is expected to come down to 5.8%.
As per the data released by RBI, the Wholesale Price Inflation (WPI) touched a record high of 15.08% in April this year. Retail inflation reached a near eight-year high of 7.79%. According to experts, the rising crude oil price and commodity prices are the main reason for the high inflation. The Russia-Ukraine war have impacted commodity prices.
In April, MPC had kept the retail inflation forecast for the current fiscal year at 5.7%. For the last four months, the inflation rate in the country had crossed 6%, the tolerance level set up by the RBI.
Meanwhile, the apex bank once again hiked the repo rate by 50 basis points to 4.9%. The key lending rate was hiked to combat inflation.