RBI Warns: Inflation Clouds Festive Economic Boom

Mumbai: The Reserve Bank of India (RBI) has sounded the alarm on rising inflation, which could potentially derail India's economic growth trajectory. Despite a robust festive season and a promising agricultural outlook, inflationary pressures, particularly in food prices, have intensified.

Private consumption has reclaimed its position as the primary driver of domestic demand, signaling a resilient economy. However, the RBI's November bulletin warns that escalating headline and core inflation could erode real economic stability. The report emphasized the importance of managing inflation to sustain growth momentum while leveraging agriculture-led rural demand.