Mumbai, Apr 5 (PTI) The Reserve Bank on Friday retained inflation projection at 4.5 per cent for the current financial year, lower than 5.4 per cent in the last fiscal.

Assuming a normal monsoon this year, CPI (consumer price index-based) inflation for the current year is projected at 4.5 per cent, with Q1 at 4.9 per cent, Q2 at 3.8 per cent, Q3 at 4.6 per cent, and Q4 at 4.5 per cent.

Also Read | RBI Repo Rate Update: Monetary Policy Committee Keeps Repo Rate Unchanged at 6.5%, Announces Governor Shaktikanta Das (Watch Video).

Reserve Bank Governor Shaktikanta Das also stressed on the need to remain vigilant on food prices, given the forecast of higher temperatures between April-June.

He also said that the impact of reduction in fuel prices on inflation will deepen in the coming months.

Also Read | Lok Sabha Elections 2024: AAP MP Sanjay Singh To Campaign Extensively for INDIA Bloc Candidates in Uttar Pradesh.

Das, however, said the elephant (inflation) seems to have gone for a walk and RBI wants it to remain in the forest.

The central government has tasked the Reserve Bank of India (RBI) to ensure that the Consumer Price Index (CPI) based inflation remains at 4 per cent, with a margin of 2 per cent on either side. The retail inflation was 5.1 per cent in February. March inflation print is scheduled to be released next week.

The Monetary Policy Committee (MPC) on Friday kept benchmark policy interest rates unchanged for the seventh time in a row.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)