Finance Minister Pranab Mukherjee expressed concern on Tuesday that inflation might touch double digits by the fiscal-end, report media.
Replying to debate on the budget in the Rajya Sabha, he said that despite the various measures taken by the government to tame inflation, he would not be surprised by a double-digit inflation coming about by month-end, as the impact of low base might continue till June. The wholesale price index-based inflation rate was 9.89% last month.
Mukherjee said high inflation and heavy borrowings were the main challenges for the current fiscal. He was optimistic of the country moving towards a high-growth rate. Meanwhile, global financial services firms including Goldman Sachs, Citi and Nomura, are expecting that the Reserve Bank of India (RBI) may raise the cash reserve ratio (CRR) by 50 basis points to take out the liquidity from the financial system. Earlier, during its quarterly review, the RBI raised CRR by 75 basis points.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.