RBI expects retail inflation to fall to 5.2% in FY24

The Reserve Bank of India (RBI), in its monetary policy report for September 2022, stated that retail inflation is expected to average at 5.2 per cent in 2023-24, assuming a normal monsoon, a progressive normalisation of supply chains and no further exogenous or policy shocks. RBI is mandated to keep retail inflation at four per cent with a margin of two per cent on either side. However, inflation has remained above the central bank’s upper tolerance level of six per cent since January 2022.