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RBI Bulletin Blames High Gold Prices for Rising Core Inflation
Financial Express Pune
|May 23, 2025
Weather anomalies behind sharp volatility in vegetable prices
WHILE CORE INFLATION has inched up in recent months and came in at an 18-month high of 4.21% in April, an article in the Reserve Bank of India bulletin highlighted that highly elevated gold prices is the reason behind the trend.
This boosts chances of back-to-back cuts in the policy repo rate in the June and August reviews of the monetary policy. Also, the inflation outlook of 4% for FY26 could be lowered further.
Core inflation (CPI, excluding food and fuel inflation) movements continued to be disproportionately impacted by the highly elevated gold prices. Excluding its impact, underlying inflation pressures too remained muted," an article on the state of the economy said. The views expressed in the article aren't necessarily that of the RBI.
This story is from the May 23, 2025 edition of Financial Express Pune.
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