Saturday, June 18, 2011

India must cut cost of goods, services to tame inflation: K C Chakrabarty

NEW DELHI: India needs to bring down cost of services and production to control inflation, K.C. Chakrabarty, a deputy governor of the central bank, said on Friday. The Reserve Bank of India raised interest rates on Thursday for the 10th time in just over a year to combat stubbornly high inflation and signalled more increases to come even as growth in Asia's third-largest economy is slowing down.  Wholesale prices, India's main measure of inflation, rose more than 9 per cent in the year through May, much more than expected. Worryingly, the figures showed price pressures had spread from food and fuel to manufacturing.  
ET

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