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Commenting on downward inflation trend too premature: Pranab Mukherjee

December 2, 2011 - New Delhi

In the backdrop of signs of easing inflation as per the weekly figures, Union Finance Minister Pranab Mukherjee on Friday said a review of the monetary policy would be done only after monthly inflation figures are announced.

"These are all weekly figures, monthly figure is yet to come and monetary policy is reviewed and the RBI (Reserve Bank of India) is watching the situation. As and when they will consider it necessary, they will adjust the monetary policy, that is their job and they are doing it efficiently and effectively," said Mukherjee, while briefing mediapersons in New Delhi.

"I would not like to make any comment on that right now. Only point that I shall have to emphasize on that this declining trend, we shall have to watch for a little longer period of time, not on the weekly basis," he added.

Mukherjee had announced on Thursday that the food price index had risen to eight percent, the slowest pace in nearly four months, while the fuel price index climbed to 15.53 percent in the year to November 19.

In the previous week, annual food and fuel inflation stood at 9.01 percent and 15.49 percent, respectively.

India's headline inflation has stayed above nine percent for the 11th month, despite 13 rate increases by the central bank since March 2010.

In its October review, the Reserve Bank of India had said if inflationary pressures started to abate by December, more rate increases may not be needed.


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