Macro-Economic Factors: Inflation

 

 

There was a dip in inflation earlier this year, reaching a 12-month low of 4.75% in May. However, it rose slightly to 5.08% in June, primarily due to increasing food prices.

Food inflation remains a key concern, driven by factors like weather and global trends. It stood at a high of 9.36% in June.

RBI's Target: The Reserve Bank of India (RBI) aims to maintain inflation within a target range of 2% to 6%. In their latest forecast, they predicted an average inflation rate of 4.5% for 2024-25.

            Overall, India's inflation is currently within the RBI's target range. However, rising food prices                and global uncertainties pose challenges for maintaining stable inflation in the coming                            months.