Inflation Above 6% Can Be Detrimental To India's Growth: Shaktikanta Das

RBI Governor Shaktikanta Das today, on November 12, addressed the issue of inflation while speaking at the Hindustan Times Leadership Summit 2022. Das mentioned that the inflation rate between 4% and 6% can help RBI to keep the monetary policy supportive of the present economic status. RBI Governor stated, "Any inflation above 6% can be detrimental to India's growth."

On that matter, Das said, "The internal committee of the RBI did a detailed analysis and found that 4% inflation target with a band of +/-2% can give us flexibility for policy making."

Das also said that the upcoming October numbers on inflation, which will be published in the next week - are expected to be below 7%.

In February, inflation rates were projected at 4% by the RBI. "We projected that our inflation would be maximum even at USD 100 dollar a barrel. But after the Ukraine war, the sudden spike in prices of essentials led to uncertainty, which triggered inflation worldwide and our country was also affected," Das added later at the Summit.

Post Russia-Ukraine war, the Indian inflation rates have ranged between 6.3% and 7.3%. However, according to the RBI Governor, the country's economy has remained resilient. Das mentioned that authorities have been successful in tackling inflation.