Inflation at the door?

First and foremost RBI cuts the growth forecast of India’s GDP to 6.8%. Previously it was estimated at 7%. RBI’s projections are near the average of almost all the rating institutions that projected India’s GDP growth. However, experts are saying estimating the growth rate of the Indian economy is very difficult due to lots of uncertainty looming over the world economy.Secondly, the most debated decision which gets a majority in the committee of 5-1, and only Jayesh Verma objected to the decision in the meeting. The decision was to increase the repo rate. Repo rates are hiked once again by RBI by 35 basis points which take the toll to 6.25%. The Repo rate is the interest rate at which the central bank of a country lends money to commercial banks. 
The move was taken to tackle high inflation. There was a slight relief when we got the news of inflation eases to 6.77% in October but soon we realized that core inflation is not declining it is food inflation that has declined. Core inflation is the change in the costs of goods and services but does not include those from the food and energy sectors.Hence concerns are there among the authorities that inflation is not going to be under control for a long period. The concern could be interpreted from the governor’s statement which saysGDP growth in India re- mains resilient and inflation is expected to moderate, but the battle against inflation is not over. pressure points from high and sticky core inflation and exposure of food inflation to international factors and weather-related events do remain, said Shaktikanta Das in the monetary policy statement on Wednesday.Even after saying that inflation is not gone completely. The projected inflation rate is 6.6% for FYQ3 2022, 5.9% for FYQ4 2022, and 5.2% for FYQ1 2023. Isn’t it too optimistic?  well, the projections are changed as and when required so they may be estimated according to the current scenario.