We see inflation averaging 5.4% in FY23: Crisil Chief Economist D K Joshi

In a Q&A, he says the Ukraine war-led spike in commodity prices will impact household inflation, and that the capex thrust by the Centre and states may take a slight hit

Ratings agency Crisil projected real gross domestic growth of 7.8 per cent in FY23 on Thursday. In an interaction with Arup Roychoudhury, Crisil’s Chief Economist D K Joshi said that the spike in commodity prices due to the war in Europe will impact household inflation. He said that he expects retail inflation to average 5.4 per cent in FY23, higher than the RBI’s projection of 4.5 per cent. He also expects that the capital expenditure thrust by the Centre and states may take a slight hit due to the existing global conditions. Excerpts:

Your GDP growth projection for FY23 is