Inflation Marginally Down at 9.1 pc, all Eyes now on RBI


New Delhi: Cheaper onion and potato pulled inflation down to 9.11 per cent in November, but the Reserve Bank has a tough task ahead of controlling prices without hiking rates as industrial output has contracted. Inflation, as measured by the Wholesale Price Index, stood at 9.73 per cent in October. It was 8.2 per cent in November last year. Prime Minister''s Economic Advisory Council (PMEAC) C Rangarajan said with inflation still ruling above 9 per cent mark, RBI should continue focusing on taming high prices. "According to latest (inflation) numbers, it is still above 9 per cent. Therefore, concerns regarding inflation cannot be taken away from the monetary authorities," he said. Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "the Finance Ministry and the RBI should take a call to tackle inflation, (and) to revive economic growth." Now with inflation dropping, though marginally, all eyes are on the RBI''s monetary policy review scheduled for December 16. The central bank has hiked key policy rates 13 times since March, 2010, to bring down rising prices. In the last review, it had indicated that there could be a pause in rate hikes if inflation situation improves. Industry bodies CII and FICCI said since inflation situation has improved, it is high time RBI should soften its anti-inflationary stance. Industry has maintained that RBI''s tight monetary policy regime is hurting investment and industrial production, which declined by 5.1 per cent in October. (More) PTI BKS
Source: PTI