Reserve Bank Governor Shaktikanta Das said on Friday that the central bank expects retail price inflation to start declining from this month. He was referring to measures taken by the central government to control the prices of vegetables such as tomatoes, restrictions on the export of non-basmati rice and reductions in the price of domestic LPG cylinders.
Mr Das was addressing a program organized by Devi Ahilya Vishwavidyalaya in Indore to interact with local students. Earlier, he also attended the meeting of the central board of the Reserve Bank.
“We expect (retail) inflation to start falling from September. Even though (retail) inflation in August will be very high, we expect inflation to start falling from September .
Tomato prices have already fallen and retail prices of other vegetables are also expected to fall from this month, he said.
Das said the government has taken several measures to ensure an affordable supply of tomatoes and other basic necessities for the people.
“Restrictions have been imposed on the export of non-basmati rice. Prices for LPG cylinders used in cookstoves have recently been reduced.”
According to government data, retail price inflation in July reached its highest level in 15 months, at 7.44 percent.
“In July, (retail) inflation was at a very high level. This surprised everyone. But especially due to the high prices of tomatoes and other vegetables, we expected it to remain high in July.”
He affirmed that despite all the global challenges, India is among the fastest growing major economies in the world.
Mr Das said the position of Indian banks is strong and stable thanks to strict regulatory measures, “but the domestic financial world must always be vigilant”.
“You must have seen the failure of some banks in the United States recently and major banks like Credit Suisse in Switzerland. But this global crisis has not impacted India,” he said. .
Das also said that due to the promotion of digital payments, the number of transactions through UPI in the country exceeded 10 billion in August.
The RBI Governor said efforts are being made to promote payments through feature phones in the country so that even people living in remote areas who do not have smartphones and where there is a problem with mobile networks can take advantage of this feature.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)