RBI measures controlled inflation

RBI's MPC willmeet on Nov 3 to discuss whatit would tell the Centreas to why itwas notableto restrain the inflation

Economists are of the view that the measures taken by the Reserve Bank of India (RBI) has controlled the inflation and add that the inflation will come down.

A senior economist also said the headline inflation could be 7.5 per cent in December putting a spanner in the inflation projections of the central bank.

The RBI's Monetary Policy Committee (MPC) will meet on November 3 to discuss what it would tell the Centre as to why it was not able to restrain the inflation within four per cent + or - two per cent for three consecutive quarters.

The RBI may also sound out the Central government as to the course of inflation as well as the reasons as to why it may be at the elevated levels.

India's central bank has been trying to contain the inflation by increasing the repo rate -- the rate at which it lends to the banks.

The central bank has increased the repo rate by 190 basis points in recent times and the last one was by 50 basis points.

In India, the retail inflation rose to 7.41 per cent in September.

"The measures taken by the government and RBI have been able to control inflation from the high of 7.8 per cent we had seen in April. The fall in global commodity prices has also been a support in containing inflation. Inflationary expectations have also come down," Rajani Sinha, Chief Economist, CARE Ratings Ltd told IANS.