Oil, food price rise likely to impact inflation outlook in

Written by: Pti
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2011 : Gokarn

Mumbai, Jan 27 (PTI) Rising oil prices and afirming-up of global and domestic food prices are likely tohave a significant impact on inflation outlook in 2011, a topRBI official said.

"High global energy, global commodities and domesticfood prices are likely to have a significant impact oninflation outlook in 2011," Reserve Bank of India''s DeputyGovernor, Subir Gokarn, told reporters here today.

Global economic recovery, now starting to look somewhatmore balanced and news of the US economy, more favourable thanbefore, would contribute to pressure on commodity prices,Gokarn said.

The Reserve Bank is concerned the IMF estimate of an USD10 increase in oil prices to USD 89 per barrel would have asignificant impact globally.

The Food and Agriculture Organisation (FAO) has alsosounded a warning a week ago that food prices worldwide mayharden during 2011, intensifying global inflationarypressures.

"This is going to reinforce the already existing foodprice pressure we have in the domestic market," Gokarn said.


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