Frontloaded actions to bring inflation further under control: RBI report

India's retail inflation has moderated after remaining above the upper tolerance level since January, and frontloaded monetary policy actions are expected to bring it further under control, the Reserve Bank of India (RBI) said in a report on Thursday.

The RBI's Financial Stability Report (FSR) also said the persistence and broadening of core inflation may continue to exert pressure going forward.

"Frontloaded monetary policy actions are expected to bring inflation into the tolerance band and closer to the target while anchoring inflation expectations," the FSR noted.

The Indian economy is confronting strong global headwinds but the sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability, it added.

"Inflation, though elevated, is retreating in response to frontloaded monetary policy actions and supply side intervention," the report noted.

The RBI said the increase