Extreme weather may pose upside risks of inflation, says RBI Bulletin

EXTREME weather conditions could pose upside risks to inflation, along with prolonged geopolitical tensions that may keep crude oil prices volatile, the Reserve Bank said in its April Bulletin on Tuesday.

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In the first monetary policy review earlier this month, the RRI's monetary policy committee (MPC) had warned of rising food prices as the main reason for the sticky inflation, forcing it keep the policy and policy rates unchanged. The Met department had earlier said the country could face heatwave conditions which would upend prices which of late has started trending down. The retail inflation has eased to 4.9 percent in March after averaging 5.1 percent in the preceding two months.