India inflation may stay at Jan level for now: Rangarajan
Published on Tue, Feb 14, 2012 at 12:12 | Source : CNBC-TV18
Updated at Tue, Feb 14, 2012 at 13:59
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India inflation may stay at Jan level for now: Rangarajan
Indian headline inflation, which eased to 6.55% in January, may remain at current levels for at least several months, C Rangarajan, chairman of Prime Minister Manmohan Singh's Economic Advisory Council said.
Indian headline inflation, which eased to 6.55% in January, may remain at current levels for at least several months, C Rangarajan, chairman of Prime Minister Manmohan Singh's Economic Advisory Council said.
The government may consider reviewing diesel prices once inflation moderates to comfortable levels, he told CNBC-TV18.
Below is an excerpt of his interview on CNBC-TV18. For complete interview, watch video.
Q: What do you make of inflation number?
A: It has moved down along the lines we expected and the trajectory of inflation is very much welcome. I think apart from the primary articles, the manufacturing inflation has also come down and that is very encouraging sign.
Q: The eye now turns to what the Reserve Bank can do. What elbowroom it has on March 15 itself a slight majority in the market was that it would be a CRR again in March and the RBI may want to see the fiscal numbers before moving into a rate cut in April but what is your sense is the time right already? Are the numbers convincing enough.
A: The trend is in the right direction and on the whole the environment is conducive to further changes in policy but the exact instrument the RBI will use will depend upon other factors and therefore one cannot say very clearly which instrument will be used. But basically the environment in terms of the price behaviour has considerably changed for the better.
