RBI may go for further monetary tightening measures: PMEAC

New Delhi, Feb 14 (PTI) The Reserve Bank may take furthermonetary tightening measures to tame inflation which stood at8.23 per cent in January, the Prime Minister''s EconomicAdvisory Council said today.

"RBI will have to take a view looking at level ofinflation. It is still at an uncomfortably high level. Someaction, continued action, by the RBI (to tighten monetarypolicy) may be required," PMEAC chairman C Rangarajan toldPTI.

His remarks came even as inflation , though downmarginally from December, continued to be above 8 per cent, alevel where it has stood at since January 2010.

The RBI has already hiked its short-term lending andborrowing rates by 25 basis points at its third quarterlyreview last month to tame inflationary pressure.

The apex bank has also termed inflation control as itstopmost priority.

Asked about the fall in inflation numbers in January,Rangarajan said: "In some ways, it was expected. We can seeinflation falling to 7 per cent by March."

At last month''s review, the RBI had revised its inflationestimate to 7 per cent by March-end, from the earlier 5.5 percent.

Inflation declined marginally to 8.23 per cent in Januaryfrom 8.43 per cent in the previous month, as prices of certaincommodities like wheat, pulses and sugar eased, althoughessential items like onions and other vegetables continued toremain firm.

Besides, food items, many experts have also voicedconcern over global crude prices which have crossed a28-month high at USD 102 per barrel on account of politicalinstability in the Middle-East, specially Egypt.