Retail inflation, measured by the Consumer Price Index (CPI), has been decreasing since December and stood at 5.09 percent in February.
"Even as inflation is on the ebb with broad-based softening of core inflation, the repetitive incidence of short amplitude food price pressures deters a swifter fall in headline inflation towards the target of 4 percent," said the article authored by a team lead by RBI Deputy Governor Michael Debabrata Patra.
The article also highlighted a slowdown in the global economy, with growth decelerating in some of the most resilient economies and leading indicators suggesting further moderation in the coming period.
In India, real GDP growth reached a six-quarter high in the third quarter of the financial year 2023-24, driven by strong momentum, robust indirect taxes, and reduced subsidies.
The article emphasised that the prominent structural demand and improved corporate and bank balance sheets are expected to drive growth in the future.
The central bank said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.