Food inflation is the main factor behind the grudgingly slow pace of disinflation: RBI Minutes

Headline CPI inflation is moderating but at a very slow pace, RBI governor noted in the minutes of RBI policy released on Friday. The last mile of disinflation is turning out to be gradual and protracted. Food inflation is the main factor behind the grudgingly slow pace of disinflation, Governor Shaktikanta Das stated. Going forward, the baseline projections show inflation moderating to an average 4.5 per cent in 2024-25. In the immediate months, however, the impact of exceptionally warm summer months on output of certain perishables; a likely rabi production shortfall in some pulses and vegetables particularly potatoes and onions; and the upward revisions in milk prices, warrant close monitoring, he added.