RBI warns of inflationary pressures from oil, food prices

RBI warns of inflationary pressures from oil, food prices
PTI
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First Published: Mon, Jan 28 2008. 06 02 PM IST
Updated: Mon, Jan 28 2008. 06 02 PM IST
Mumbai: Reserve Bank of India (RBI) on Monday warned of inflationary pressures as domestic oil prices were yet to reflect the surging global oil prices that are close to $100 per barrel.
“Since pass-through of higher international oil prices to domestic prices remains incomplete, inflation remains suppressed,” Reserve Bank said in its Macroeconomic and Monetary Development Review released here.
RBI said domestic prices of petrol and diesel have remained unchanged since February 2007, when prices were last cut, even as international crude prices (Indian basket) increased by almost 56% from $56.6 per barrel in February 2007 to $88.2 by the year end.
Furthermore, kerosene and LPG prices have also not been raised since April 2002 and November 2004, respectively.
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First Published: Mon, Jan 28 2008. 06 02 PM IST