Inflation to rise in H2FY18: MPC

India Infoline News Service | Mumbai | October 04, 2017 15:15 IST

Monetary policy committee believes the inflation to rise to 4.2% to 4.7% in second half of this fiscal year.

The Reserve Bank of India (RBI) has maintained status quo keeping the benchmark repo rate unchanged at 6% in its fourth bi-monthly monetary policy.
The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
Monetary policy committee believes the inflation to rise to 4.2% to 4.7% in second half of this fiscal year. The inflation path for the rest of 2017-18 is expected to be shaped by several factors.
First, the assessment of food prices going forward is largely favourable, though the first advance estimates of kharif production pose some uncertainty. Early indicators show that prices of pulses which had declined significantly to undershoot trend levels in recent months, have now begun to stabilise.
Second, some price revisions pending the goods and services tax (GST) implementation have been taking place.
Third, there has been a broad-based increase in CPI inflation excluding food and fuel. Finally, international crude prices, which had started rising from early July, have firmed up further in September. Taking into account these factors, inflation is expected to rise from its current level and range between 4.2-4.6 per cent in the second half of this year, including the house rent allowance by the Centre.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.



  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.