The central bank has already initiated measures to tighten its monetary policy by hiking key rates in a bid to suck out excess liquidity from the system and tame inflationary expectations.
'Inflation pressure is stronger than we anticipated. Between November 2009 and February 2010, in a space of four months, the wholesale price inflation has gone from 5.6 percent to 9.9 percent,' Reserve Bank of India (RBI) governor D. Subbarao said Tuesday.
'We have constantly maintained about the need for exiting from the expansionary monetary policy. We have also been saying all along that we need to exit in India ahead of other countries because of the growth-inflation trade-off we are facing,' he said.
Analysts say the government's decision to raise auto fuel prices in major cities from Thursday is likely to stoke inflationary pressures further and the RBI would raise rates for the second time in as many month in its April policy review.
Source : http://sify.com/finance/food-inflation-rises-to-16-35-per-cent-news-default-kebn4ccjejg.html
No comments:
Post a Comment