defence exam Indian Navy Chargeman/Draughtsman Mock Test 2023 English Verbal Ability Reading Comprehension
Comprehension Passage
Read the given passage and answer the questions that follow
After edging above the Reserve Bank of India’s inflation-targeting framework in January and February, retail inflation began to trend lower in the months thereafter. As measured by the consumer price index, it fell to 5.66 percent in March and further to 4.7 percent in April. This trend is likely to continue. On Wednesday, RBI Governor, Shaktikanta Das, expressed optimism that the inflation print for May could be lower than that in April. However, Das, who was speaking at the CII’s annual session, cautioned that despite this moderation, there was no room for complacency. “The war on inflation is not over,” he said. The decline is being driven by a combination of a slower momentum in prices and the base effect. This softening is visible even in core inflation. As per a recent report by Nomura, the consumer price index is currently tracking at sub 4.5 percent levels (May 1-21), with the base effects likely to lower headline inflation by 0.2 percentage points. ICRA has also pegged it at around 4.5 percent for the month. These prints would imply that inflation in the first quarter of the year (April-June) may well end up being lower than the RBI’s forecast of 5.1 percent. And though the central bank’s forecast points towards inflation moving upwards in the months thereafter — in both the second and third quarter of the year it has projected inflation at 5.4 percent — most analysts are expecting it to be considerably lower. This would increase the monetary policy committee’s space to maneuver. On the growth front too, there is a divergence between the RBI’s estimates and those of economists. The central bank, in its forecast in the last monetary policy committee, had pegged the economy to grow at 6.5 percent in 2023-24. On Wednesday, Das expressed confidence that the economy would grow closer to the RBI’s estimate, though he flagged the risks from lower merchandise exports and El Nino. However, others are less sanguine and have projected the economy to grow at a much slower pace. For instance, Crisil has pegged the economy to grow at 6 percent, while Nomura has pegged it even lower at 5.3 percent. As growth inflation moderates further, driven by the effects of tighter domestic monetary policy and subdued global demand, expectations are beginning to firm up of the monetary policy committee pivoting towards easing financial conditions towards the end of the year.
After edging above the Reserve Bank of India’s inflation-targeting framework in January and February, retail inflation began to trend lower in the months thereafter. As measured by the consumer price index, it fell to 5.66 percent in March and further to 4.7 percent in April. This trend is likely to continue. On Wednesday, RBI Governor, Shaktikanta Das, expressed optimism that the inflation print for May could be lower than that in April. However, Das, who was speaking at the CII’s annual session, cautioned that despite this moderation, there was no room for complacency. “The war on inflation is not over,” he said. The decline is being driven by a combination of a slower momentum in prices and the base effect. This softening is visible even in core inflation. As per a recent report by Nomura, the consumer price index is currently tracking at sub 4.5 percent levels (May 1-21), with the base effects likely to lower headline inflation by 0.2 percentage points. ICRA has also pegged it at around 4.5 percent for the month. These prints would imply that inflation in the first quarter of the year (April-June) may well end up being lower than the RBI’s forecast of 5.1 percent. And though the central bank’s forecast points towards inflation moving upwards in the months thereafter — in both the second and third quarter of the year it has projected inflation at 5.4 percent — most analysts are expecting it to be considerably lower. This would increase the monetary policy committee’s space to maneuver. On the growth front too, there is a divergence between the RBI’s estimates and those of economists. The central bank, in its forecast in the last monetary policy committee, had pegged the economy to grow at 6.5 percent in 2023-24. On Wednesday, Das expressed confidence that the economy would grow closer to the RBI’s estimate, though he flagged the risks from lower merchandise exports and El Nino. However, others are less sanguine and have projected the economy to grow at a much slower pace. For instance, Crisil has pegged the economy to grow at 6 percent, while Nomura has pegged it even lower at 5.3 percent. As growth inflation moderates further, driven by the effects of tighter domestic monetary policy and subdued global demand, expectations are beginning to firm up of the monetary policy committee pivoting towards easing financial conditions towards the end of the year.
What inference can be drawn from RBI Governor Shaktikanta Das's remarks at the CII's annual session, as per the passage?
1
The inflation rate for May will definitely be higher than that of April.
2
Even though inflation is moderating, there's still work to be done to control it.
3
The retail inflation will remain constant in the coming months.
4
The RBI has successfully managed to lower the inflation to an acceptable level.