The Reserve Bank today said high inflation, primarily driven by food prices, has started spreading to the broader economy now but it is likely to ease with the arrival of fresh crops. RBI deputy governor Subir Gokarn told reporters in Mumbai today that Inflation is spreading to specially manufacturing sector. He said, we are in the early part of the Rabi harvest and there is a growing confidence that the harvest is reasonably good although there will be pressure on specific commodities but overall there should be some moderation in food prices. Food inflation eased a bit to 17.81 per cent in the last week of February from 17.87 per cent in the previous week, but may not soothe overall inflation as fuel prices have risen sharply following the hike in duties. The wholesale price index inflation rose to 8.56 per cent in January, breaching the Reserve Bank's end-March projection of 8.5 per cent.
News On AIR | March 11, 2010 8:36 PM
High inflation, primarily driven by food prices: RBI