RBI MPC minutes show deepening concerns over inflation pressures

Disinflation can't rely only on food, must be firm in inflation fight, says RBI Das

The minutes of the Monetary Policy Committee (MPC)’s Feb 6-8 meeting showed an increasing degree of concern among most members over persistent inflationary pressures, with the rate-setting panel largely flagging stubbornly high core inflation.

At the conclusion of the meeting on February 8, the six-member MPC announced a 25-basis-point hike in the repo rate to 6.50 per cent, taking the total quantum of tightening since May 2022 to 250 basis points.

"CPI inflation has moderated primarily due to lower vegetable prices. Core inflation (i.e., consumer price index (CPI)-based inflation excluding food and fuel), however, is elevated and sticky at around