Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Home > Business > PTI > Report


Oil prices put pressure on inflation

January 24, 2006 13:11 IST

Concerned over continuing upward spiral in global oil prices, Reserve Bank of India on Tuesday warned that the inflation risk remained high and will persist well into 2006.

The consequent rise in domestic prices of LPG and kerosene could push up inflation in 2006-07, the central bank stated in the third quarter review of the Monetary Policy.

The Monetary and Credit Policy 2005-2006

However, it retained inflation projection at 5-5.5 per cent.

It also indicated a pick up in aggregate demand getting stronger with some manageable spill over into the external sector in the form of widening trade and current account deficits.

"It is important to respond in a timely and even pre-emptive manner to these developments to ensure that generalised inflation spirals do not develop in an environment of higher than anticipated expansion in money supply and bank credit with large shifts in liquidity.


© Copyright 2005 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Share your comments


Advertisement






Copyright 2006 Rediff.com India Limited. All Rights Reserved.