Reserve Bank of India Governor D Subbarao told bankers On Wednesday that though inflation, as measured by the Wholesale Price Index (WPI), has dipped sharply, there is no possibility of a deflation. The inflation rate had risen by 0.31 per cent for the week ended March 21, 2009.
“Besides WPI, the RBI also monitors the Consumers’ Price Index (CPI), which is still in double digits,” Subbarao said, adding that the prices people have to pay for food products are still high.
