Mumbai: KC Chakrabarty, a Reserve Bank of India deputy governor, said on Wednesday that inflation was in a difficult situation but manageable.
RBI is set to announce its monetary policy on January 25 and is expected to tighten the rates to curb inflation.
His statement came as the food items has jacked up overall inflation, measured on the basis of wholesale prices, to 8.43 percent in December from 7.48 percent in November.
Also, the government’s move to raise petrol prices is expected to fuel inflation.
The wholesale price rise in December has also prompted the Prime Minister’s Economic Panel to further revise upward the March-end inflation forecast to up to seven per cent from
6.5 percent estimated earlier.
Food inflation has also remained high through December, touching the year high level of 18.32 percent. It finally eased somewhat for the week ended January 1 to 16.91 percent.
The government, recently, unveiled measures to check spiralling prices by deciding to continue ban on exports of edible oils, pulses and non-basmati rice and asked states to
waive local taxes on essential commodities.