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| 'Inflation to exceed 9% by March end' |
| Press Trust of India / New Delhi Jan 21, 2010, 17:26 IST |
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The government today said inflation could exceed 9 per cent by March-end with the impact of crop failure becoming visible by the close of the fiscal.
"Unless something dramatic happens on agri prices, it (inflation) would probably be over 9 per cent," said Pronab Sen, Chief Statistician of India and Secretary, Ministry of Statistics and Programme Implementation.
Wholesale price-based inflation, which dipped to sub-zero levels following the impact of the global crisis, has started firming up and rose to 7.3 per cent in December, 2009.
When asked whether easy money policy was also fueling inflation, Sen said, "I don't think that is really the case. There is large undisbursed balance with the banks. However, it could become a problem going forward."
On the steps that Reserve Bank of India (RBI) could take in its forthcoming monetary policy review on January 29 to tame inflation, Sen said, the central bank has to take many other factors while changing the key policy rates and ratios.
The RBI will have to take a view on policy rates and ratios in its monetary review as the food inflation has become a matter of concern, mainly driven by higher prices of essential commodities like pulses, potato, onion and other vegetables.
Food inflation had climbed to a decade's high of around 20 per cent in the first fortnight of December but has started sliding now and was at 16.81 per cent for week ended January 9.
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