Economy on the boil; RBI may step in

Economy on the boil; RBI may step in
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First Published: Mon, Jun 14 2010. 11 12 PM IST

Updated: Mon, Jun 14 2010. 11 12 PM IST
Inflationary pressure has shifted to manufactured products from food, a trend that will make it more difficult for the Reserve Bank of India to stanch rising prices without hurting economic growth.
Also See Manufacturing Output Growth (Graphics)
Wholesale price inflation in May accelerated faster than expected to 10.16%, according to data released on Monday. Chief economic adviser Kaushik Basu said that rising food prices had virtually stabilized and inflation is now being driven by manufactured products such as iron and steel. Rising domestic demand is fanning inflation and mounting pressure on the central bank, which meets July end, to tighten monetary policy.
Graphics by Ahmed Raza Khan/Mint
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First Published: Mon, Jun 14 2010. 11 12 PM IST
More Topics: Economy | RBI | Kaushik Basu | Iron | Steel |