08 august 2024 : In contrast to the perspectives presented in the Economic Survey regarding the exclusion of food from retail inflation, the Reserve Bank of India (RBI) asserted on Thursday that the pressures of food inflation must be acknowledged due to the significant proportion of food within the consumption basket.
“The primary consideration is that our objective pertains to headline inflation, in which food inflation constitutes approximately 46 percent of the consumer price index (CPI). Moreover, the general public tends to perceive inflation predominantly through the lens of food inflation rather than its other components,” stated the RBI Governor during the announcement of the monetary policy on Thursday. “Consequently, we must not allow ourselves to become complacent simply because core inflation has seen a substantial decline,” he emphasized.
