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RBI Looks At Options To Control Inflation In The Economy Attributed To Few Key Commodities

Neha Sood, Thursday 28th January 2010


The Reserve Bank Of India has mentioned that certain key commodities are driving the inflation in the economy and the apex bank has hinted at possibility of coming out with a monetary policy to address the situation. It must be noted that bank intends to control the inflation without affecting the growth in the economy.


Explaining the rationale behind the sharp increase in inflation, the RBI in its third quarter Review of Macroeconomic and Monetary Developments mentioned that commodities like sugar, eggs and food grains amongst others are sharply contributing to the jump in the WPI index.


The review however was optimistic about the growth of the Indian economy while it did acknowledge the need to check the inflation in the economy. It also mentioned that import of food items can also be an way out for reducing the inflation resulting out of increase in prices of food products.

 
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