June 17 (Reuters) – India’s inflation rate has reached uncomfortable levels and some action from the central bank is needed to curb demand-side pressures, a top policy adviser said on Thursday.
C. Rangarajan, chairman of the prime minister’s Economic Advisory Council, was speaking to reporters on the sidelines of a conference.
India’s headline inflation unexpectedly accelerated 10.16 percent in May, heightening expectations the Reserve Bank of India (RBI) would raise rates before its scheduled July review despite concerns over Europe’s debt crisis. [ID:nSGE65D0E6] (Reporting by Suvashree Dey Choudhury and Neha D’silva)
