New Delhi: Monetary policy will have its impact in moderating inflation, finance minister Pranab Mukherjee said on Tuesday.
He also said he hoped that good monsoons would moderate inflation.
India’s headline inflation WPI (wholesale price index) eased in July, but persistent price pressures in manufactured goods raised the odds that policy will have to stay tight in the economy despite the rising risks to growth.
The WPI rose an annual 9.22% in July, government data showed on Tuesday, almost in line with the median forecast for a 9.20% rise in a Reuters poll.
The Reserve Bank of India (RBI) has raised interest rates 11 times since March 2010 to tame inflation.