Inflation may have peaked in January: RBI deputy governor Michael Patra

The six-member monetary policy committee of the RBI - that sets interest rate - has a target to maintain CPI inflation at 4 per cent

Consumer price index (CPI)-based inflation — the main yardstick of the Reserve Bank of India (RBI) for policy making — is likely to have peaked in January this year. And, it will ease to the 4 per cent target by 2023, the central bank’s deputy governor Michael Patra said on Wednesday.

January’s retail inflation accelerated to a seven-month high of 6.01 per cent, mainly due to rising food and manufactured item prices. It just breached the upper tolerance band of the RBI. 

The six-member monetary policy committee of the RBI — that sets interest rate — has a target to maintain CPI