By NNN-PTI,
New Delhi : With inflation turning positive after 13 weeks, the Reserve Bank Friday said the wholesale price index may rise to six per cent by this fiscal end – a development that may pose challenges to the central bank in maintaining a stable monetary policy.
“We have always said by March it should be five per cent.
It may become six per cent,” RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of a seminar on financial inclusion.
He said if procurement prices increase 10 per cent every year food inflation cannot be less than 10 per cent.
“This is also partially policy oriented … We want to give more money in the hands of farmers,” he said.
When asked whether it will be a challenge for RBI to choose between promoting growth and stemming inflation, he said the challenge is also there.