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Podcast: In Focus by The Hindu
Episode: Should the RBI focus on core inflation while forming its monetary policy? | In Focus podcast
Description: The Reserve Bank of India’s Monetary Policy Committee announced on Thursday (August 8) to keep the repo rate unchanged at 6.5% in its August 2024 meeting for the ninth consecutive time. It maintained its inflation projection for FY25 at 4.5 per cent.While announcing the MPC policy, Governor Shaktikanta Das noted that headline inflation reached 5.1 per cent in June 2024, driven by unexpected factors. Fuel prices remained in deflation for the tenth consecutive month, but food inflation surged. Food inflation contributed over 75 per cent to headline inflation in May and June. Vegetable prices alone accounted for roughly 35 per cent of June's infl...