MUMBAI, April 23 Reuters Extreme weather events along with prolonged geopolitical tensions could pose a risk to India39;s inflation trajectory, even as growth in the South Asian nation exhibits an uptrend, the Reserve Bank of India RBI said in its latest bulletin on Tuesday.

…food price pressures have been interrupting the ongoing disinflation process even as shocks from adverse climate events and geopolitical tensions add uncertainties to the outlook, the RBI staff said in a 39;State of the Economy39; article.

India is likely to experience more heatwave days than normal between April and June, the country39;s weather office said earlier this month.

While alignment with the inflation target is gradually occurring, incoming data will provide greater clarity and confidence on the disinflation path, the RBI said.

India39;s retail inflation eased to a fivemonth low of 4.85 in March from 5.09 in the previous month.

The central bank, which has kept policy rates unchanged for the last seven meetings, seeks to ensure inflation aligns durably and sustainably to the 4 target. Retail inflation is seen averaging at 4.5 in 202425, the central bank estimates.

Meanwhile, conditions are shaping up for an extension of a trend upshift in real gross domestic product growth in India, backed by strong investment demand and upbeat business and consumer sentiments, the RBI said.

So far, capital deepening is powering the stepup in the India39;s growth trajectory, led by sustained…