The Reserve Bank of India sees retail inflation falling below its targeted 4 per cent by the second half of the current fiscal year as the spread of coronavirus pandemic followed by continued lockdown in the country has posed serious challenges to the demand in the economy.
RBI Governor Shaktikanta Das said inflation is on a declining trajectory, as it has fallen by 170 basis points from its January 2020 peak. “In the period ahead, inflation could recede even further, barring supply disruption shocks and may even settle well below the target of 4 per cent by the second half of 2020-21,” Das said.