Rakesh Mohan, Deputy Governor, Reserve Bank of India, or RBI, said inflation continues to be a concern and is a challenge for policy to curb inflation to global levels, reports CNBC-TV18. The spikes and seasonal falls in inflation will continue and the central bank is not targeting the explicit inflation rate, he added.
 
"RBI aims to contain inflation within 5% and further reduce inflation medium-term as price, financial stability are key drivers to sustain growth. Banks must be careful in risk assessment," stated Mohan.

According to Mohan, 80% of inflation rise is on food,metal and oil price rise.“RBI saw incipient signs of rising inflation in previous policies,” he commented.