September 25, 2014 4:34 PM

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Need to break back of Inflation: RBI Governor Raghuram Rajan

Reserve Bank of India Governor Raghuram Rajan today said, there was a need to break the back of inflation which remains high and controlling it would make the apex bank's position more comfortable. He said, once inflation is contained, the RBI will be in a much more comfortable position. Mr. Rajan was addressing the 8th Statistics Day Conference in Mumbai. In August, consumer price index (CPI) or retail inflation eased to 7.8 per cent from 7.96 per cent in July, while the wholesale price index (WPI) moderated to 3.74 per cent from 5.19 per cent in July. Rajan pressed for an urgent need to improve the quality, quantity and scope of this data.He also said that India's employment data, which forms the basis for number of decision on monetary policies in many countries, comes with a lag and is not comparable. He added that the RBI is working with a National Sample Survey Organization (NSSO) to create a strong and reliable data base on employment. The Governor further said that the country does not have a proper producer price index and the RBI would soon create a series.

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