Inflation has peaked and is likely to stabilise going forward: RBI

For a one percentage point reduction in inflation, 1.5-2 percentage points of GDP have to be foregone

Inflation in the country will stabilise in the days to come, and the peak has been left behind in May-June, the Reserve Bank of India (RBI) said on Tuesday.

“So far, inflation is on track to staying within the trajectory envisaged and it is likely to stabilise during the rest of the year. In our view, this is a credible forward-looking mission statement for the path of inflation,” the central bank said in the State of the Economy Report - a part of its July bulletin - released on Tuesday.

The RBI, in its August 6 monetary policy, revised up