Inflation rate expected to decrease by second quarter
January 9, 2019 7:27 am
The Reserve Bank has revealed that inflation rate as of December 2018 stood at 4.9 percent.
This compared to the previous provisional rate of 3.2 percent in 2017.
The RBF says this increase was anticipated because of the festive season along with the Back-to-School shopping.
Economist, Rohit Kishore predicts the current inflation rate will decrease by June.
“This slight increase is not a problem. It will sort of come down when we come out of the festive time and the back-to-school period. I predict coming out of Easter into June and July the inflation should go back to normal at its 2.5 – 2.6 mark”
Dr Kishore believes the interest rate issued by the Central Bank needs to remain low as this will assist in further growing the economy.