D Subbarao on Inflation Though some say the RBI has failed in taming the inflation but managed to pull down growth, the reality is that the headline inflation, measured by the wholesale price index, came down from double-digit levels to around 5 per cent. But consumer price inflation is still ruling high, which is mainly due to certain distributional issues. “I do not agree with the contention that RBI is obsessed with inflationary pressure. We have to keep in mind inflation, financial stability, and, at the same time, growth. We are concerned about all the three,” he said. But, in the current context, containing inflation is the prime agenda for the bank, he said. Concerns of the voiceless poor were not heard by the media. But it is RBI’s responsibility to address them as inflation affects the poor the most. “We need to make some sacrifice of growth in the short term, while trying to bring down inflation. And, this is inevitable,” he said. #RBI #ReserveBankofIndia #DSubbarao #inflation
Posted on: Fri, 02 Aug 2013 14:19:00 +0000