Fuel price to impact inflation: RBI

Mumbai, Dec 1: Reserve Bank of India deputy governor Rakesh Mohan today said this week's cut in the retail price of fuel will have an impact on inflation.

''The fuel price will come into wholesale price index. We do have a constant review of all changes that take place. Besides, we are constantly monitoring the situation,'' Mr Mohan told reporters on the sidelines of a function at the Indian Merchants' Chamber here.

The government cut retail petrol and diesel prices by 4.25 per cent and 3 per cent respectively on Wednesday which, according to analysts, is expected to lead to lower increase in the wholesale price index (WPI).

The WPI rose 5.45 per cent in the 12 past months to November 18, higher than previous week's annual rise of 5.29 per cent due to a rise in mineral and manufactured product prices.

Meanwhile, the economy grew by 9.2 per cent in the July-September period from a year earlier, faster than an annual rate of 8.9 per cent in the previous quarter, as the RBI data released yesterday indicated.

''High economic growth is a welcome event. We have not made a formal review since October and we have not taken a review after the latest data,'' Mr Mohan said.

The apex bank raised its key lending rate by 25 basis points to 7.25 per cent and held its key borrowing rate steady at 6.00 per cent in its October policy review. It said it would act promptly to contain inflationary pressures.

UNI