Today, the government will release figures on June’s retail inflation

Since January of this year, retail inflation has been above 6%, causing the central bank to raise policy rates twice in a row (repo).

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The Reserve Bank will consider the Reserve Bank’s next bi-monthly monetary policy, which will be announced in early August, after the government releases vital statistics on June retail inflation on Tuesday.

Since January of this year, retail inflation has been above 6%, causing the central bank to raise policy rates twice in a row (repo).

Retail inflation measured by the Consumer Price Index (CPI), which was 7.04 percent in May, is unlikely to fall below the Reserve Bank of India’s comfort level of below 6 percent anytime soon given the high commodity prices brought on by the ongoing Russia-Ukraine war.

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At 5.30 in the evening, the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, will issue the CPI figures.

The benchmark repo rate, at which the Reserve Bank loans short-term money to banks, was sharply increased by 0.50 percent to 4.90 percent last month as part of its bimonthly monetary policy review in an effort to stabilise spiralling prices. It came after the central bank raised the repo rate by 0. 40% during an off-cycle meeting on May 4.

Shaktikanta Das, governor of the RBI, expressed optimism that the price situation will gradually improve in the second half of the current fiscal year while addressing at the Kautilya Economic Conclave on Saturday.

He added that the central bank would keep using monetary policies to underpin inflation in order to achieve strong and long-lasting growth.

The central bank would take steps to preserve and promote macroeconomic stability, according to the governor, who stressed that price stability is essential to maintaining both macroeconomic and financial stability.

The Reserve Bank, which takes the CPI into account when determining its monetary policy, increased its inflation prediction for the current fiscal year from 5.7 to 6.7% in June.