RBI lowers inflation target to 6.8%

The Reserve Bank of India has revised downwards inflation projection for March 2013 to 6.8% from the earlier estimation of 7.5% with the firm belief that price rise has peaked out. HT reports.

The Reserve Bank of India has revised downwards inflation projection for March 2013 to 6.8% from the earlier estimation of 7.5% with the firm belief that price rise has peaked out.

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The economy has been facing high inflation for the past few years as average wholesale price index inflation stood at 9.6% in 2010-11 and 9% in 2011-12 before moderating to 7.18% in December 2012.

“The substantial easing of non-food manufactured products inflation over the third quarter in an environment of slower growth and excess capacity in some sectors suggest that inflation has come off its peak,” said RBI.

But it does not see prices falling steeply mainly due to stubborn food price increase.