Inflation in India expected to come down to 5% in 2023, 4% in 2024: IMF

Global inflation is set to fall from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024 - above pre-pandemic (2017–19) levels of about 3.5%, the International Monetary Fund said

Inflation in India is expected to come down from 6.8% in the current fiscal year ending March 31 to 5% the next fiscal, and then drop further to 4% in 2024, the International Monetary Fund (IMF) said on Tuesday.

“Inflation in India as in other countries is expected to come down from 6.8 percent in 2022 to 5 percent in 2023 and then 4 percent coming towards the target in 2024,” Daniel Leigh, Division Chief, Research Department of the IMF told reporters in Washington here.

Also read: IMF retains growth projections for India; economy expected to slowdown to 6.1% in 2023 from 6.8% in 2022

“That partly reflects the central bank's actions,” he added.

According to the World Economic Outlook update released by the IMF on Tuesday, about 84% of countries are expected to have lower headline (consumer price index) inflation in 2023 than in 2022.

Global inflation is set to fall from 8.8% in 2022 (annual average) to 6.6% in 2023 and 4.3% in 2024 - above pre-pandemic (2017–19) levels of about 3.5%, it said.

The projected disinflation partly reflects declining international fuel and non-fuel commodity prices due to weaker global demand. It also reflects the cooling effects of monetary policy tightening on underlying (core) inflation, which globally is expected to decline from 6.9% in the fourth quarter of 2022 (year over year) to 4.5% by the fourth quarter of 2023, the IMF said.