In April 2023, India’s CPI inflation drops precipitously to 4.7 percent, falling below the Reserve Bank of India’s (RBI) 6% maximum tolerance level

Since January 2022, inflation has exceeded the RBI’s 6 percent upper tolerance limit. Which prompted the central bank to pursue aggressive rate-hike measures from May 2022 to Feb 2023.

India’s CPI Forecast

Textiles & shoes experienced an inflation rate of 7.48 percent. Additionally, housing inflation in April was 4.91%, while fuels & light inflation was 5.52 percent.

Having said that, MPC will keep an eye out for concerns related to oil price volatility and inclement weather’s impact on food inflation.

The policy repo rate of the the Reserve Bank of India is 6.51 percent at the moment. It then maintained the Bank Rate at 6.75 percent as well as SDF rate & MSF rate at 6.25% each.