RBI Governor - public spends 50% of income on food...
RBI governor - public spends 50% of income on food...A big statement has come from Shaktikanta Das, governor of the banking sector regulator Reserve bank of India. The RBI governor has said that if we say that inflation has been reduced by taking out the prices of vegetables and food items in the Consumer Price Index, then it will not be right from the point of view of the public. He said, we need to think according to the public who have to spend 50 percent of their income on food and drink.50 percent has to be spent on food and drinkGovernor Shaktikanta Das, in an interview with NDTV, said, food inflation is high and core inflation is low and then if we say that inflation has come down, then it will not be right. He said, this question will come in the mind of the public, our salary is so much and we have to spend so much on food items, then how are the government and RBI saying that inflation has come down? RBI governor said food items are a very important component in our headline inflation target. Food inflation accounts for 46 percent of our consumption basket. Common people have to spend 50 percent of their income on food items.Will have to wait for a reduction in policy rates!On the reduction in policy rates i.e. reduction in interest rates, RBI governor said, when the interest rates will be reduced will depend on the data coming in future. He said, inflation is coming down and for this year RBI has set a target of 4.5percent inflation rate. Shaktikanta Das said, we will study the data for the next six months. Our focus is on inflation which is coming down and we want it to come close to 4 percent. He said, we want and our target is that the inflation rate should come to 4 percent and it should remain close to this rate for a long period. The governor said we have to maintain patience.