'Elephant is out for a walk...': What RBI governor Shaktikanta Das said on inflation

As expected, there were no surprises from the RBI today. RBI Governor Shaktikanta Das reiterated the MPC's commitment on inflation fight saying the central bank remains resolute in its decision to fight inflation, particularly keeping in mind food prices. 

At the April policy decision, the RBI kept the inflation projection at 4.5%, assuming a normal monsoon, which is same from its February projection both for growth and inflation.

"Global growth remains resilient; recent uptick in crude oil prices needs to be closely monitored," the governor said. "High, persisting food inflation could unhinge anchoring of inflationary expectations. "Elephant in the room (inflation) appears to have gone out for a walk, we want it to remain in forest," he added.  Food inflation continues to exhibit volatility, impeding disinflation process, he said further. 

"It is essential for the best interest of the economy that CPI inflation continues to moderate and aligns to the target on a durable basis. Till this is achieved our task remains unfinished. The success in the disinflation process so far should not distract us from vulnerability of the inflation trajectory to the frequent incidents of supply side shocks," the governor said. 

Here's what he said on inflation

International food prices remain benign 
Output of key vegetables remain key monitorable owing to weather forecasts 
Climate shocks pose upside risk for domestic, international food prices 
Recent uptick in crude oil prices need to be monitored closely 
Continuing geopolitcal tensions also pose upside risk to crude prices