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(24 Apr 2025, 12:14)

Impact of tariffs on domestic inflation uncertain, fall in energy prices augurs well for inflation outlook

Rajiv Ranjan, Reserve Bank of India Monetary Policy Committee (MPC) member, noted in the latest meeting of the committee that sharp decline in inflation expectations of households for both three months and one year ahead and of businesses for one year ahead suggest anchoring of inflation expectations going ahead. While the impact of tariffs on domestic inflation is uncertain, the fall in energy prices augurs well for the inflation outlook. All in all, considerable progress achieved on the disinflation front has offered latitude to monetary policy to be growth supportive.
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