The Reserve Bank has reiterated its commitment to fighting inflation. Releasing its annual report on Thursday, RBI said it would tackle rising prices even if that meant slower economic growth. It added that there was a danger people would accept high inflation as a normal phenomenon. The strong statement comes just weeks before the Reserve Bank’s mid-quarter review on 16 Sept.
India’s food inflation has surged close to the double-digit mark in middle of this month. The food price index rose to 9.8% in the period to the 13 August. The previous week it was 9.03%.
Indian shares declined for a second day in a row despite expectations of more economic stimulus from the US Fed. The Sensex plunged 139 points to 16,146. And the Nifty dropped 49 to 4,840.