Covid-19: RBI sees inflation falling below 4 pc target by mid-FY21

RBI goverr Shaktikanta Das on Friday said inflation is on a declining trajectory and could fall below central bank's 4 per cent target by second half of this fiscal amid challenges posed by Covid-19 pandemic.

He said consumer price index based retail inflation has fallen by 170 bps from its January 2020 peak.

"In period ahead, inflation could even recede furr, barring of course any supply side disruptions and may even settle well below target of 4 per cent by second half of 2020-21," Reserve Bank Goverr Das said in a early morning video conference.

Das added that such an outlook would make policy available to address intensification of risks to growth and financial stability brought about by Covid-19.

retail inflation for March fell to a four-month low of 5.91 per cent on cheaper food articles.