HDFC sees high inflation worrisome, but manageable
The unexpected rise in the annual inflation figure is on the higher side and worrisome, but it is premature to talk about any rate hikes now, a top official at Housing Development Finance Corp said on Friday.
"There are four more weeks to go before the next policy appraisal by the central bank and we have to wait for the four weeks' figure," Deepak Parekh, chairman of India's top mortgage firm, told reporters.
"I am very positive this would be a quirk of the week. This is not a runway inflation. It is higher than expected but manageable. It can come down," he said.
The wholesale price index rose 6.68 percent in the 12 months to March 15, faster than the previous week's rise of 5.92 percent, and well above a forecast of 5.96 percent.
Friday's number was the highest since January last year when it hit a two-year high of 6.69 percent.
Higher food prices and a modest rise in retail fuel prices in mid-February have driven up inflation, posing a major policy headache against the backdrop of slowing growth in the broader economy and general elections due by May 2009.
Parekh also said commodity prices in the international market were high and unsustainable.
"There could be a meltdown in these prices," he added.
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