The Reserve Bank of India’s bi-monthly inflation expectations survey showed a moderation in inflation over both three- and 12-month horizons, raising expectations inflation has peaked, despite rising food prices. RBI repo rate has remained unchanged at 6.5% for three consecutive policies with consumer price inflation on target, but economists continue to warn that the impact of El Nino on crops and the recent strengthening of global commodity prices like crude oil, may push inflation up.
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