ID :
128112
Wed, 06/16/2010 - 11:41
Auther :
Shortlink :
https://oananews.org//node/128112
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RBI will act to keep inflation under the lid: FM
New Delhi, June 15 (PTI) As it bets on a good monsoon for
food prices to ease, the Indian government on Tuesday said the
Reserve Bank of India will consider appropriate policy actions
to tighten money supply to bring down inflation.
Wholesale prices-based inflation for May climbed to 10.16
per cent, driven by costly food items that have been so since
monsoon, which accounts for 80 per cent of rains the country
receives, failed last year.
The weather office has forecast a near normal monsoon
this year, although it has been slow to advance across the
country.
"Food inflation has started coming down a little bit,
(but) not fully. With the expectation of good monsoon and
crop, I think moderating influence will be there from the
middle of July onwards," India's Finance Minister Pranab
Mukherjee told reporters here.
Food inflation stood at 16.74 per cent as of May 29, but
is off the 20 per cent high seen in December last year.
"So far as the monetary part is concerned, the Reserve
Bank will look into it, will consider it," Mukherjee said.
"Even in the last policy announcement, 25 basis points
were increased... So, as and when the Reserve Bank feels
appropriate steps are required to be taken to control the
inflation, it will do so," he added.
The Reserve Bank has raised rates twice this year to
check food inflation from spreading to manufactured goods, but
with inflation continuing to rise, economists expect another
round of policy action even before the scheduled July 27
review of monetary policy.
The Minister attributed rising prices to shortage of
certain commodities, besides the impact of base effect.
"To tackle the problem, whatever is required from the
supply side, we have already taken those steps. Commodities is
in some short supply (and) to meet the balance, we have
allowed duty free imports...," the Finance Minister said.
On possibility of raising fuel prices, Mukherjee said,
"The report of the Kirit Parikh committee is there. We have
had one meeting of the government...we could not take the
decision. As and when the meeting takes place, the government
will take a decision." PTI SA
MRD
food prices to ease, the Indian government on Tuesday said the
Reserve Bank of India will consider appropriate policy actions
to tighten money supply to bring down inflation.
Wholesale prices-based inflation for May climbed to 10.16
per cent, driven by costly food items that have been so since
monsoon, which accounts for 80 per cent of rains the country
receives, failed last year.
The weather office has forecast a near normal monsoon
this year, although it has been slow to advance across the
country.
"Food inflation has started coming down a little bit,
(but) not fully. With the expectation of good monsoon and
crop, I think moderating influence will be there from the
middle of July onwards," India's Finance Minister Pranab
Mukherjee told reporters here.
Food inflation stood at 16.74 per cent as of May 29, but
is off the 20 per cent high seen in December last year.
"So far as the monetary part is concerned, the Reserve
Bank will look into it, will consider it," Mukherjee said.
"Even in the last policy announcement, 25 basis points
were increased... So, as and when the Reserve Bank feels
appropriate steps are required to be taken to control the
inflation, it will do so," he added.
The Reserve Bank has raised rates twice this year to
check food inflation from spreading to manufactured goods, but
with inflation continuing to rise, economists expect another
round of policy action even before the scheduled July 27
review of monetary policy.
The Minister attributed rising prices to shortage of
certain commodities, besides the impact of base effect.
"To tackle the problem, whatever is required from the
supply side, we have already taken those steps. Commodities is
in some short supply (and) to meet the balance, we have
allowed duty free imports...," the Finance Minister said.
On possibility of raising fuel prices, Mukherjee said,
"The report of the Kirit Parikh committee is there. We have
had one meeting of the government...we could not take the
decision. As and when the meeting takes place, the government
will take a decision." PTI SA
MRD
