In a first, RBI may have to explain to govt why it couldn't curb inflation

Retail inflation has overshot the 6% upper tolerance limit for three years on the trot; experts say protracted Ukraine war and other factors may keep prices up

For the first time, the Reserve Bank of India (RBI) may have to explain to the government the reasons why retail price inflation has been overshooting the upper band of the mandatory tolerance limit of six per cent for three straight quarters.

Already, each month of the last quarter of FY22 saw the consumer price index (CPI)-based inflation rate at over six per cent. According to the Monetary Policy Committee's (MPC) own projection, the rate would touch 6.3 per cent in Q1 of the current financial year. The projection of the second quarter is 5.8 per cent. Now this is