New Delhi | Jagran Business Desk: The central government on Monday informed that retail inflation has increased from 6.69 per cent in August to 7.34 per cent in September, likely because of highly food prices. It was 3.99 per cent in September last year. 

According to the data provided by National Statistical Office (NSO), the rate of price rise in the food basket was 10.68 per cent in September compared to 9.05 per cent in August. It also informed that the rate of price rise in the food basket was 10.68 per cent in September against 9.05 per cent in August.

This comes day after Reserve Bank of India (RBI) Governor Shaktianta Das said that retail inflation will likely remain close to the targeted level by the last quarter of the current fiscal year. He, however, had noted that it will stay above the tolerance level at 6.8 per cent for the quarter ended September 2020.

"Our projections indicate that inflation would ease closer to the target by Q4 of 2020-21," Das had said in a statement, adding that some of this optimism is being reflected in people's expectations.

Later, the RBI Governor had informed that the central bank has decided to keep the key policy repo rate unchanged at 4 per cent. He said that the RBI has also decided to continue with the accommodative stance of monetary policy as long as necessary "to revive growth on a durable basis and mitigate the impact of COVID-19".

"For 2021-22, assuming a normalisation of supply chains with the availability of effective vaccines against COVID-19, a normal monsoon, and no major exogenous or policy shocks, structural model estimates indicate that inflation will move in a range of 4.1-4.4 per cent," the RBI said in a statement after Das' press conference on Friday.

(With PTI inputs)

Posted By: Aalok Sensharma