The Hindu : Business : Inflation at elevated levels sequel to higher food prices

Online edition of India's National Newspaper
Tuesday, Jan 30, 2007
ePaper


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Business

Business

Inflation at elevated levels sequel to higher food prices

Special Correspondent

Pre-emptive steps could have helped contain prices: RBI

MUMBAI: The Reserve Bank of India (RBI) on Monday stated that the consumer price based inflation remain at elevated levels, mainly reflecting the impact of food prices.

"Pre-emptive monetary and fiscal measures along with the moderation in fuel prices could have helped to some extent in containing inflationary expectations, although underlying inflationary pressures remain,'' the RBI stated in its document, Macroeconomic and monetary developments: Third quarter review 2006-07,'' released here on Monday.

Upward pressure

Inflation movements in 2006-07 have been driven by primary food articles and manufactured products prices, the Reserve Bank of India felt, adding that "among the major groups, prices of primary articles led by wheat, pulses, fruits, milk and oilseeds posed upward pressures on inflation.''

Monetary Policy

The RBI Governor, Y. V. Reddy, is scheduled to announce the third quarter review of Annual Policy for 2006-07 on Wednesday.

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