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RBI Keeps Current Year Inflation Projection at 5.2 Percent Amid Rising Food Prices
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CNBC Awaaz•07-10-2026, 10:22
RBI Keeps Current Year Inflation Projection at 5.2 Percent Amid Rising Food Prices
- •The Reserve Bank of India has maintained the retail inflation projection for the current year at 5.2 percent.
- •CPI inflation rose to 4.8 percent in August compared to 4.5 percent in July, driven by food and fuel inflation.
- •The spread of food inflation has widened beyond a few items, with significant surges seen in sugar and onions.
- •The RBI has shifted its policy stance from neutral to calibrated tightening due to ongoing inflation risks.
Key Questions Answered
The Reserve Bank of India has projected the current year's retail CPI inflation at 5.2 percent.
In view of growing inflation risks, the RBI has shifted its monetary policy stance from 'neutral' to 'calibrated tightening' to move towards gradual monetary tightening as necessary.
The RBI noted that food price increases are no longer limited to a few select items but are impacting a larger number of commodities, with significant surges witnessed in items such as sugar and onions.
