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India 'committed' to tackling spiralling inflation

Published on Jun 17, 2014 8:11 PM
 
Reserve Bank of India (RBI) Governor Raghuram Rajan smiling after arriving for a quarterly interest rate review briefing at the RBI headquarters in Mumbai in this October 29, 2013 file photo. India is ready to deal with any external shock arising from the Iraq crisis, its central bank chief said on June 17, 2014 even as a spike in oil prices heightens the inflation, growth and budget risks facing new Prime Minister Narendra Modi. -- FILE PHOTO: REUTERS

MUMBAI (AFP) - India's central bank chief said on Tuesday that tackling spiralling inflation would be a priority in the coming months, amid fears of further price rises hitting tens of millions of the country's poor.

Reserve Bank of India (RBI) governor Raghuram Rajan's comments come a day after the government said wholesale inflation had hit a five-month high in May, driven by higher food and fuel prices.

Forecasts of a weak annual monsoon that could cut crop production across the country have further fuelled inflation fears.

"I expect the next few quarters will be primarily engaged in combating inflation," Mr Rajan told reporters on the sidelines of an industry event in Mumbai.

 
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