RBI to take measures to contain inflation: Reddy

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Pune, June 23 (UNI) The Reserve Bank of India (RBI)will take caliberated and legitimate measures to contain inflation, RBI Governor Y V Reddy said here today.

The latest hike in inflation was anticipated and was due to rise of global oil prices, on top of underlying pressures, Dr Reddy said, while speaking at a function here today.

''Oil shocks have been externally imposed, which need to be managed,'' he said.

Dr Reddy remarked that fuel price is the major challenge ahead, though the outlook of food prices is optimistic and overall demand-supply position is good.

He said with a well adjusted and smoothly managed move, inflation could be managed. ''RBI will play its role in moderating and managing the aggregate demand, so that the pressure on prices are not intensified. RBI is confident of bringing inflation in line with the policy statement,'' Dr Reddy asserted.

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