The Reserve Bank of India will up inflation forecast in it's July review. Talking to reporter in Hydrabad, RBI Governor D Subbarao indicated that the central bank will revise its inflation projection upwards for the year in view of the persistent increase in the prices of commodities and food articles. .The apex bank is slated to announce the first-quarterly review of the monetary policy on July 27 during which it is widely expected to jack up key policy rates. The central bank has to draw a balance between the demand to contain inflation and promote growth.Finance Minister Pranab Mukherjee had earlier said the RBI would take appropriate steps to contain the rising inflation. On liquidity crunch, the Goveror said it is a temporary phenomenon and the situation is easing. The liquidity situation has become more comfortable now.