Is inflation over? Know what the RBI report says

Inflation: Is inflation over in India or is the common man going to get rid of it in coming days? A Reserve Bank of India (RBI) press release said food prices are expected to ease slightly in the coming days. According to a statement issued by the Central Bank, the prices of grains, pulses and edible oils have decreased massively during the last 15 days of August 2024. Headline inflation, measured in terms of the annual change in the Consumer Price Index (CPI), eased to 3.5 per cent in July 2024 from 5.1 per cent in June 2024, said a bulletin prepared by the Reserve Bank's Deputy Board of Governors. In the RBI's press release for August 2024, the decline in inflation to 1.54 per cent was attributed to a favorable comparative base of 2.9 per cent. This has resulted in a positive impact of over 1.4 percent. The bulletin was prepared by the RBI Deputy Governor Michael Debabrata Patra's team. Potatoes have not let the common man catch up, the RBI press release said, with food price data up to August 12 showing large moderation in prices of grains, pulses and edible oils. However, the price of potato among vegetables has gone up, which has not allowed the common man to be deterred. At the same time, onion and tomato prices have decreased slightly. Inflation Controlled by Inflation Policy 'Do Food Prices Affect Other Sectors? The bulletin, published under the heading, says that core inflation is easing from 2022-23. This is mainly due to monetary policy measures, stance and reduction of cost-based shocks. However, the rise in food prices during these years has been putting upward pressure on core inflation, but it has been under control due to deflationary measures under the inflation policy. Also read: Traveling by air during the festive season will cost money, RBI has said in a statement that measures should be taken to reduce inflation? Aggregate demand is increasing. In addition, there is a cost-based risk amid current global tensions. In view of this, there is a risk that core and aggregate inflation will increase and may spiral out of control. If food price pressures persist and affect other sectors, a cautious monetary policy approach is needed. Also read: Gold smuggler who hid in banana and bamboo plantation, escaped after attacking BSF jawan The post Is inflation over? Do you know what the Reserve Bank report says appeared first on Prabhat Khabar.