India's retail inflation was above RBI's six per cent target for three consecutive quarters and had managed to fall back to the RBI's comfort zone only in November 2022.
SBI Research, in a report published moments before the RBI meeting started, said India's central bank is expected to pause the policy rate hike during the February 6-8 review meeting.
Be it capital expenditure, the asset quality of banks, foreign exchange reserves, GST collections, fiscal consolidation path, and convergence of wholesale and retail inflation, Budget document data showed all these indicators to be on strong ground.
India's retail inflation was above RBI's 6 per cent target for three consecutive quarters, and had only managed to fall back to the RBI's comfort zone in November 2022.
According to the latest data released by the ministry of statistics, the retail inflation during the month of December was at 5.72 per cent. The latest figures, released on Thursday, showed a marginal decline and further moderation in retail inflation as compared with the previous month.
India's retail inflation rate based on Consumer Price Index was 5.88 per cent in November from 6.77 per cent during October. Retail inflation in India had remained above 6 per cent till October for over three quarters, which was beyond RBI's comfort zone.