“I have been advised that inflation has got entrenched and monetary policy does not have or has very little impact on food prices and fuel prices,” he said, adding that demand for protein based items and fruits and vegetables is high.
The retail inflation, based on Consumer Price Index (CPI), swelled to 10.09 per cent in October, mainly on account of high food prices. The Reserve Bank has hiked policy interest rate by 0.25 per cent each in September and October to bring down the stubbornly high inflation.
“There is no easy solution to taming food inflation...There are no quick fixes for taming inflation. I am afraid it will take some time to contain this inflation.