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Inter-ministerial group discusses high inflation with RBI

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:33 PM IST

An inter-ministerial group (IMG) chaired by Chief Economic Adviser Kaushik Basu today discussed ways to tackle high inflation with Reserve Bank of India (RBI) Governor D Subbarao.

"The RBI's understanding of short- and long-term inflation situation (was explained to the IMG)," RBI Governor Subbarao told reporters, emerging from the meeting.

When asked about RBI's view on inflation he said, "We said everything we needed to say in the (monetary) policy document."

Secretaries from finance, commerce and agriculture ministries who are part of the IMG also attended the meeting.

Earlier this week, the RBI had hiked the key policy rates by 50 basis points to tame inflation, which is seen as an aggressive stand which may slow down economic growth.

With a view to check rising prices, the RBI has hiked key policy rates nine times since March 2010.

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Although food inflation came down to 8.53% in April from the 20% level seen in February last year, actual prices of food items continue to remain high.

This is the third meeting of the IMG since its formation in February to suggest measures to control spiralling prices, particularly that of essential items.

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First Published: May 06 2011 | 7:09 PM IST

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