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Reserve Bank of India (RBI) Governor Shaktikanta Das stressed that the success in controlling inflation has to be preserved and taken forward to achieve a 4 per cent inflation target on a durable basis. He further said the baseline projections show inflation moderating to 4.5 per cent in 2024-25 from 5.4 per cent in 2023-24 and 6.7 per cent in 2022-23.  

He said ‘this success in the disinflation process should not distract us from the vulnerability of the inflation trajectory to the frequent incidences of supply-side shocks, especially to food inflation due to adverse weather events and other factors.’  

The governor said the economic growth prospects of the Indian economy in 2024-25 look bright.  He said the strong growth momentum, together with our GDP projections for 2024-25, give us the policy space to unwaveringly focus on price stability. Price stability is our mandated goal and it sets strong foundations for a period of high growth.’ He also said lingering geo-political tensions and their impact on commodity prices and supply chains are also adding to uncertainties in the inflation trajectory.