- NEW DELHI: The price of oil will put pressure on the Reserve Bank of India’s (RBI) strategy to manage inflation, a deputy central bank governor said.
However, Subir Gokarn said India should not think its rate of inflation will remain permanently higher and said the rate of non-food manufacturing inflation was evidence the bank’s moves to tighten policy were having an impact to contain prices.
The inflation rate has remained stubbornly high in the past year, driven in part by food prices, prompting seven rate hikes by the central bank since last March.
The annual Wholesale Price Index (WPI) rose more than 8 percent at the last reading in January.