RBI deputy governor Patra sees FY22 inflation at 5.7% or lower

Economists say RBI likely to revise inflation forecast downward in October policy

The fall in retail inflation to 5.3% in August, which stayed within the Reserve Bank of India’s target range for two successive months, could lead the central bank to revise the inflation projection for the current financial year.

In the August review of monetary policy, RBI revised its inflation projection for the current financial year upward to 5.7% from 5.1% projected in the June policy review.

“Taking into account the outlook on growth and inflation and keeping in mind the inherent output costs of disinflation, it is pragmatic to envisage a glidepath along which the MPC can steer the path