June 14, 2010 5:41 PM

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Inflation breaches double digit barrier

As the latest inflation data breached the double-digit barrier, the Planning Commission today suggested that the Reserve Bank should aim at curbing the galloping prices. Planning Commission Deputy Chairman Montek Singh Ahluwalia said he agrees with the suggestion of Prime Minister's Economic Advisory Council Chairman C Rangarajan that rising inflation and not robust industrial output should guide the RBI. The RBI is scheduled to announce the first quarterly review of the monetary policy on July 27, during which the central bank could take some action to deal with the deteriorating price situation. Late last Week Rangarajan said that the RBI should look at the May inflation data and not the robust April IIP numbers to decide before finalising its next policy move.

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