Mumbai: The global economy is witnessing an upward curve of inflation with the USA reporting inflation at a 41-year high of 9.1 per cent in June.
Indian economy can escape global inflation trap, says Reserve Bank of India (RBI), provided the dip in commodity prices should persist alongside easing supply chain pressures.
Commodity prices in the nation saw a fall in recent weeks which according to RBI could help the economy.
The biggest of source of relief, RBI said, is from inflation coming off the peak. Expanding it further, the central bank added in its State of the economy' report that inflation is still at an elevated level.
The Indian Express reported RBI Governor Shaktikanta Das as saying earlier that inflation was likely to ease gradually in the second half of 2022-23.
Alongside Deputy Governor Michael Patra earlier said harsh policy was not required to tackle price pressures.
As inflation globally sees peaks, India faces a retail inflation of 7.01 percent in June notably down from 7.04 percent in May and 7.79 percent in April.
The RBI reports calls for continuous monitoring of widening trade deficit and portfolio outflows as well as moderating external debt.
Alongside noting that India's financial sector remains stable, the RBI report pins its hopes of recovery on another bountiful year of agriculture activity following southwest monsoon, which will raise hopes of rural demand catching up with urban spending.