Patra, a deputy governor of the RBI, forecasts that inflation would exceed 6 percent for three quarters.

Retail inflation is forecast to surpass the mandated inflation target range of 2-6% for three consecutive years . Retail inflation increased marginally in May after reaching an eight-year peak of 7.79% in April .

NEW DELHI: India's retail inflation is forecast to surpass the mandated inflation target range of 2-6% for three consecutive years, but it is showing signs of peaking, according to Reserve Bank of India deputy governor Michael Patra.According to Patra, the RBI Act requires that if the inflation target is not achieved for three consecutive quarters, which is the likely scenario, the RBI will issue a report to the central government, in which the reasons for the failure to meet the inflation target will be explained.Retail inflation increased marginally in May after reaching an eight-year peak of 7.79% in April, but it stayed within the central banks tolerance range of 2-6% for the fifth month in a row.Patra, who spoke at a conference hosted by the PHD Chamber of Commerce and Industry, said that key indicators of inflation were showing signs of second-round effects that necessitated monetary action.

According to Patra, internal studies have shown that growth is unambiguously impaired when inflation hits 6%, making it vital to respond to price pressures.High inflation has weakened the rupee and pushed it to record lows, while bond yields have increased on hopes of aggressive monetary policy tightening and a record government borrowing program.The RBI will shield the rupee from extreme volatility and not allow any jerky or chaotic movements, according to the deputy governor.While dismissing the current situation as uncomfortably high, Patra said the RBI will take the necessary steps to ensure that the government's borrowing requirement is efficiently completed.