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INDIAN CENTRAL BANK CAUTIONS AGAINST HIGH INFLATION.
MUMBAI, Aug 1 Asia Pulse - The Reserve Bank on Tuesday cautioned that rising prices of crude oil and commodities as well as volatility in financial markets may push up inflation again.
"Inflation outlook remains a matter of concern on account of energy and other commodity prices, increased capacity utilisation rates in developed and major emerging economies and the impact of rising wages on inflation in advanced industrial economies," RBI Governor Y V Reddy said, while releasing the quarterly review of the monetary policy.
Inflation based on wholesale prices declined to 4.41 per cent for the week ended July 14, much lower than the peak of 6.69 per cent in January, after the government and the central bank took a number of measures to check rising prices, especially of essential food items like wheat ...
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The meeting which lasted for more than an hour is part of the efforts to finetune the busy season monetary and credit policy to be unveiled on October 25. Reddy declined to say anything on the outcome of the meeting, that is customarily held ahead of the credit policy, which would have a mid-term
Source: HighBeam Research, INDIAN CENTRAL BANK CAUTIONS AGAINST HIGH INFLATION.