RBI MPC Minutes: Inflation May Edge Up Despite Recent Softening – CNBC tv18

RBI’s Monetary Policy Committee, In its August Minutes, Expressed Guarded Optimism On Inflation, Noting Recent Softness in Prisies, But Cautioned That Pressures May Resurface in the Coming Quarters.

India’s retail inflation Eased to 1.55% in July, The lowest reading since June 2017, Compared with 2.10% in June. Food Inflation Slipped Further Into Negative Territory at -76% in July from -1.06% in June, LED by Sharp Declines in Vegetables (-20.69%) and Pulses (-13.76%).

RBI Governor Sanjay Malhotra said inflation was set to fall Substantily in the Near Term Due to Food Price Moderation. “Inflation is far more Benign due to Higher Food Price Moderation,” He Noted, But Warned That Headline Inflation was projection to Inch Up Again from Q3 Onards.

Dr Poonam Gupta Flagged that The July CPI Moderation was “Not General, but primarily food definition,” Adding that inflation may firm up Above 4% in Q4 and Clock Approach 5% by Mid-2026.

Saugata Bhattacharya observed that recent moderation came from a concentrated subset of the cpi basket, which posd “a latency risk.” He added that while forecasts for fy26 remain moderate, pris are projection to rain there.

Also read, RBI Mpc Minutes: Policymakers Flag Caution; External Uncertainty, Tariffs Remain Key Risks

Professor ram singh cauble that the unpredentability of global and domestic factors called for mainTaining policy flexibility, while dr Rajiv Ranjan Highlighted that Risks from you have aatherou Upen the current benign food inflation Scenario.

Overall, Members Favoured a cautious approach, watching inflation transmission and potential UPSIDE RISKS BEFORE Considering Further Policy Actions.