RBI revises GDP growth to 6.9%

Inflation for primary articles, which include food and non-food items, stood at 14.66% for the week ended January 16. Potato prices have increased 57.56% over the last year, followed by pulses that have become dearer by 46.87%. The annual rate of inflation for fuel, power, light and lubricants eased to 5.7% over the week ended January 16 from 6.34% for the previous week. Meanwhile, the central bank, in Thursday’s macroeconomic and monetary developments report, revised its GDP growth rate estimates to 6.9% for this fiscal, up from its earlier forecast of 6%. “The pace and shape of recovery continue to remain uncertain,’’ the RBI said, adding that its biggest anxiety was about the recovery losing momentum once the props of fiscal stimulus and monetary accommodation were withdrawn. In view of the dominance of food price inflation, balancing the policy needs of supporting a durable return to the high growth path while avoiding inflation through monetary policy has emerged as a delicate challenge for the RBI, the report said. The revision in GDP growth estimates was based on the RBI’s Professional Forecasters Survey conducted last month.