Zee Media Bureau
Mumbai: Reserve Bank of India Governor Raghuram Rajan said on Tuesday the next few quarters would be engaged in combating inflation.
We are ''watching inflation''. Hopefully, appropriate food management will bring down prices, Rajan said.
Rajan further added that with sufficient reserves and low CAD, India is in a better position to meet external sector challenges.
India`s wholesale price inflation hit a five-month high in May, and prospects of weak summer monsoon rains and turmoil in Iraq have increased the risk of rising food and fuel prices.
In May, wholesale prices rose a faster-than-expected 6.01 percent as a 19 percent increase in potato prices during the month pushed up food inflation to 9.50 percent from 8.64 percent in April.
With Agency Inputs
