Letter to BS: At a 10-month low, retail inflation below RBI target

A rate increase will lead to the growth of household savings, capital inflows, which are crucial in promoting investment and job opportunities

This refers to the report “At a 10-month low, retail inflation below RBI target” (September 13). Though the food and overall inflation as of August 2018 is within the envisaged target, the fuel inflation is fast rising because of the rising price level of crude in the international market. Besides that, the rupee is sliding, the current account deficit is widening, and since the government has cleared the new crop procurement policy, chances are that the prices of food grains will grow. The monetary policy committee of the Reserve Bank of India will have to look at hiking the policy