\n In this screenshot taken from RBI Youtube on Friday, Feb. 7, 2025, Reserve Bank of India (RBI) Governor Sanjay Malhotra delivers the Monetary Policy statement.
\n | Photo Credit: RBI Youtube\n <\/p>\n<\/div>\n

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\t The Reserve Bank on Friday (February 7, 2025) projected the retail inflation at 4.2% for next financial year beginning April while retaining the forecast for 2024-25 at 4.8%.<\/p>\n

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Unveiling the last bi-monthly monetary policy of this fiscal year<\/a>, RBI Governor Sanjay Malhotra said food inflation pressures, in absence of any supply side shock, should see a significant softening due to good kharif production, winter-easing in vegetable prices and favourable rabi crop prospects.<\/p>\n

He further said core inflation is expected to rise but remain moderate.<\/p>\n

Also, continued uncertainty in global financial markets coupled with volatility in energy prices and adverse weather events, presents upside risks to the inflation trajectory, he said.<\/p>\n

Taking all these factors into consideration, CPI inflation for 2024-25 is projected at 4.8% with Q4 at 4.4%, Mr. Malhotra said, after chairing his first Monetary Policy Committee meeting.<\/p>\n

“Assuming a normal monsoon next year, CPI inflation for 2025-26 is projected at 4.2% with Q1 at 4.5%; Q2 at 4%; Q3 at 3.8%; and Q4 at 4.2% ,” he said, and added the risks are evenly balanced.<\/p>\n

In its last monetary policy review, the RBI had projected the headline inflation for 2024-25 at 4.8% with Q3 at 5.7%; and Q4 at 4.5%. CPI inflation for Q1:2025-26 is projected at 4.6%; and Q2 at 4%.<\/p>\n

CPI-based inflation declined to a four-month low of 5.22% in December, mainly on account of easing of prices in the food basket, including vegetables. It was at 5.48% in November.<\/p>\n

It increased from an average of 3.6% during July-August to 5.5% in September and further to 6.2% in October 2024.<\/p>\n

The Economic Survey tabled in Parliament<\/a> last week had suggested India needs to develop climate-resilient crop varieties and enhance yields to increase the production of pulses, oilseeds, tomatoes and onion to ensure long-term price stability.<\/p>\n

It emphasised that India’s food inflation rate has remained firm, driven by a few food items like vegetables and pulses.<\/p>\n

The contribution of vegetables and pulses to the overall inflation stood at 32.3% in 2024-25 (April to December). <\/p>\n

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Published – February 07, 2025 11:26 am IST<\/span><\/p>\n<\/div>\n<\/div>\n

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In this screenshot taken from RBI Youtube on Friday, Feb. 7, 2025, Reserve Bank of India (RBI) Governor Sanjay Malhotra delivers the Monetary Policy statement. | Photo Credit: RBI Youtube The Reserve Bank on Friday (February 7, 2025) projected the retail inflation at 4.2% for next financial year beginning April while retaining the forecast for […]<\/p>\n","protected":false},"author":2,"featured_media":198603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[10],"tags":[],"class_list":{"0":"post-198602","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n