Subscribe to the BlogThe growth story in India is likely to be affected in a big way in the near term due to surging inflation. The monthly inflation data reported by the government yesterday for January 2010, stands at a record high 8.56%. The inflation is primarily due to 14% spurt in the primary articles and 7% spike up in manufactured products.
The central bank of the country is expected to work on cutting down the liquidity in the system to ward off any further surge in inflation. This has already been indicated in the seasonal monetary policy last month when the RBI raised up the cash reserve ratio by 75 basis points.