Economists termed high economic growth rate of 7.9 per cent during the second quarter as "above expectation" and said the Reserve Bank would now focus more to tame inflation.
"This (7.9 per cent) has turned out to be much more positive than one has expected...RBI's monetary policy would now be more focused on inflation," Prime Minister's Economic Advisory Council Chairman C Rangarajan said.
He further said that the council's overall growth projection of 6.5 per cent for the current fiscal may have to be revised upwards. Beating every prediction, the economy grew by a significant 7.9 per cent in the second quarter, up from 6.1 per cent in the previous quarter, essentially due to a good showing by the industry and the services sector.
Rating agency Crisil principal economist DK Joshi said there is a strong possibility of interest rate hike by the RBI in January. Inflation should now occupy more weight for the government.
Food inflation has crossed 15 per cent in the second week of November while overall wholesale price inflation stood at 1.34 per cent in October.
The RBI in its second quarter monetary policy review projected inflation to rise to 6.5 per cent by end of the current financial year.