RBI's Upward Inflation Revision: Precious Metals Impact

The Reserve Bank revised its inflation projection upward for the current fiscal year to 2.1%, with the first two quarters of the next fiscal year at 4% and 4.2%, due to rising precious metal prices. Despite geopolitical uncertainties, core inflation remains stable, experts predict, amid bright food supply prospects.

The Reserve Bank has revised its inflation projection for the current fiscal year to 2.1%, influenced largely by higher prices of precious metals.

For the first and second quarters of the next fiscal year, the projection stands at 4% and 4.2%, respectively. Notably, core inflation remains stable at 2.6%, excluding gold.

RBI Governor Sanjay Malhotra emphasized geopolitical risks and volatility in energy prices as potential inflation challenges, yet pointed to optimistic food supply prospects.

(With inputs from agencies.)