High inflation remains a cause of concern: C Rangarajan
January 6th, 2011 - 12:54 pm ICT by ANI
New Delhi, Jan 6 (ANI): Expressing concern over the skyrocketing prices of commodities, Dr. C Rangarajan, Chairman of Indian Prime Minister’s Economic Advisory Council, said high inflation remained a cause of worry for the government.
Talking to reporters here on Wednesday, Rangarajan asserted that inflation above five percent would be troublesome for the Indian economy.
“Well, if the overall inflation remains at a reasonably high level, that is a matter for concern. Whatever may be the factor that triggers inflation if the overall inflation remains at the level, which is well above five percent, then it is an uncomfortable level. I think that we have always thought the inflation level should remain close to about four percent,” he added.
Union Finance Minister Pranab Mukherjee had earlier said that the year-end inflation might be around 6.5 percent even after the recent fluctuation in the prices of various commodities.
Though overall inflation moderated to 7.75 per cent in November from 8.58 per cent in October, food inflation has increased rapidly in the first half of December.
From 8.69 per cent during the week ended November 27, food inflation rose to 9.46 per cent for the week ended December 4. It rose further to 12.13 per cent in the following week, and shot up to 14.44 per cent for the week ending December 18.
High onion prices, coupled with that of milk, were blamed for high food inflation.
The Reserve Bank (RBI) last year raised policy rates six times to rein in inflation. However, in its mid-quarterly review in December, RBI refrained from raising these rates, since the system was facing cash crunch. (ANI)
- Rising inflation: Pranab Mukherjee asks CMs to crack down on hoarders - Jan 07, 2011
- Pranab Mukherjee expresses concern over food inflation - Jan 06, 2011
- Govt. will take more steps to check price rise: Mukherjee - Dec 30, 2010
- India's food inflation rises for second week - Dec 16, 2010
- Food inflation at 10-week high, government assures action (Roundup) - Dec 30, 2010
- Food inflation zips on high onion, fruits, eggs, meat prices - Dec 30, 2010
- Food inflation zooms on high onion, fruits, eggs, meat prices - Dec 23, 2010
- Inflation inches up, analysts expect rate hike (Lead) - Jul 14, 2011
- Food inflation touches two-month high (Lead) - Jun 09, 2011
- Inflation down to 7 percent by March 2012: Rangarajan - Oct 20, 2011
- Food inflation in India falls to 9.52 per cent - Mar 10, 2011
- India's food inflation rises, another rate hike in offing - Jun 09, 2011
- India's food inflation declines further, still in double digits - Nov 17, 2011
- Food inflation slips marginally, still above comfort level - Oct 13, 2011
- Food inflation soars, onion prices biggest contributor - Jan 06, 2011
Tags: c rangarajan, cash crunch, commodities, economic advisory council, fluctuation, indian economy, indian prime minister, inflation, New Delhi, onion prices, pranab mukherjee, six times, uncomfortable level, union finance minister, week ending december, worry, year end