Malhotra: giving core inflation number was request from market

RBI Governor Sanjay Malhotra stated that the decision to provide a core inflation number was a response to market demand, aiming to enhance transparency and improve monetary policy formulation. During a press conference following the April 6–8 Monetary Policy Committee (MPC) meeting, Malhotra emphasized that the move reflects the evolving needs of financial markets and policymakers in assessing inflationary pressures more accurately.

The Reserve Bank of India has maintained its key policy rate at 5.25% amid ongoing trade developments with the U.S. and the European Union, which have alleviated some external pressures on the Indian economy. The central bank noted that while external headwinds remain, the successful resolution of trade tensions has improved the overall economic outlook.

Malhotra also highlighted that the new CPI series, which became effective in February 2026, is expected to reduce volatility in headline inflation by better reflecting household consumption patterns. The updated CPI methodology, which reduces the weight of food and beverages, is part of broader efforts to refine inflation measurement and improve policy transmission.

Looking ahead, the RBI will focus on the effective transmission of previous rate cuts and monitor inflation and growth indicators closely. The next monetary policy review in April will incorporate updated CPI and GDP projections based on the new methodology, ensuring a more accurate reflection of economic conditions.