Friday, August 6, 2010

Subir Gokarn: India is fighting Inflation in the Right Way

Amidst a lot of concern about impletion rate in India, Deputy Governor of  Reserve Bank of India Subir Gokaran has assured everyone that the bank has done enough to fight against inflation. He spoke to the journalists in Chennai city and he stated that in the next few months, the good results of actions  taken by RBI will be seen in the market.
Subir Gokaran said, "We think we have done enough to manage inflation and we expect to see the effects of this in the second half of the year, because actions act with a lag."
In the last few months, India has been suffering from high inflation rate and this is not good news for most of the people because high inflation rate always has a negative impact on price of food and other essential items. In India, most of the people are still poor and any change in the price of food and other essential commodities can have a serious implication on their life style.
One good news is that, India is having a good monsoon rain so far and this will have a positive impact on agricultural production. As a result, there will be supply of food items when the harvest comes to the market and this will help to ease the pressure on price of food items. 

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