Reserve Bank Governor Shaktikanta Das on Friday said the inflation outlook is highly uncertain due to the outbreak of the COVID-19 pandemic and expressed concern over elevated prices of pulses.
He also said there is a need to review import duties to moderate prices.
Headline inflation may remain firm in the first half of the year and may ease in second half. Inflation may fall below 4 per cent in the third or fourth quarter of the current fiscal, according to the Governor.
He added food inflation has surged by 8. 6 per cent, compared to early months.
Further, Das said government revenues have been impacted severely due to the slowdown in economic activity amid the pandemic.
