RBI says brace for more price hikes, inflation is here to stay

If you thought the heat of price rise will end with summer you may be mistaken. The Reserve Bank of India in it's economic outlook as part of it's Monetary Policy expects prices to remain elevated through the year especially oil, both for you car and cooking.

Governor Das explained that edible oil prices are likely to stay elevated in the near term and that spike in crude oil prices since end of February 2022 due to the Russia Ukraine crisis poses a substantial risk to inflation.

Also read/watch | DA hike effective January 2022 announced; 50 lakh govt staff to benefit

In fact the boss of Mint Street added that food prices are likely to remain under pressure due to international prices acting as a floor for even domestic produce.The consumer price inflation (CPI) has already been above the rise topping 6% for two consecutive months is likely to remain above the 'tolerance' zone for the next few months.

As per the latest RBI's estimates, CPI inflation is seen averaging to 6.3 percent in Q1 or first quarter (April-June 2022), five percent percent in Q2 or second quarter (July-September 2022), 5.4 percent in Q3 or third quarter (October-December 2022), and 5.1 percent in the fourth quarter or Q4 (January-March 2023) of the current fiscal.

Also read/watch | Price hikes from Maggi to coffee: See what is costlier