“Price stability is definitely uppermost in our minds and price stability basically means maintaining and adhering to the inflation target,” Das said at a press conference after the RBI’s central board meeting.
“The character and the content of inflation in the advanced economies is different from the character and content and the drivers of inflation in India.”
Das was responding to a question about the inflationary impact of surging crude oil prices amid increased geopolitical tensions in Ukraine.
Earlier in the day, Brent oil prices hit the highest in more than seven years on fears that a possible Russian invasion of Ukraine could trigger sanctions that would disrupt exports from the world’s top producer.
Brent crude futures were at $95.56 a barrel, up $1.12, or 1.2 per cent, in early trade after earlier hitting a peak of $96.16, the highest since October 2014.
At the policy meeting on February 10, the RBI said that CPI inflation is seen at 4.5 per cent in the next financial year. The Monetary Policy Committee pegged the price gauge at 4.9 per cent in April-June, 5 per cent in July-September, 4 per cent in October-December and 4.2 per cent in January-March.
