Coronavirus pandemic: Inflation may fall below 4% target by mid-FY21, says RBI

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Reserve Bank of India (RBI) governor Shaktikanta Das said inflation may settle well below the target of 4 per cent by the second half of 2020-21.

Reserve Bank of India (RBI) Governor Shaktikanta Das (Photo: PTI)

Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said the inflation is on a declining trajectory and could fall below the central bank’s 4 per cent target by the second half of this fiscal amid challenges posed by Covid-19 pandemic.

Shaktikanta Das said the consumer price index-based retail inflation has fallen by 170 bps from its January 2020 peak.

“In the period ahead, inflation could even recede further, barring of course any supply side disruptions and may even settle well below the target of 4 per cent by the second half of 2020-21,” Shaktikanta Das said in an early morning video conference.

Shaktikanta Das added that such an outlook would make policy space available to address the intensification of risks to growth and financial stability brought about by Covid-19.

The retail inflation for March fell to a four-month low of 5.91 per cent on cheaper food articles.

IndiaToday.in has plenty of useful resources that can help you better understand the coronavirus pandemic and protect yourself. Read our comprehensive guide (with information on how the virus spreads, precautions and symptoms), watch an expert debunk myths, check out our data analysis of cases in India, and access our dedicated coronavirus page. Get the latest updates on our live blog.

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About the author: Sohom Das
Founder of Tuccho.

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