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The Reserve Bank of India said that the wholesale price index might rise to 6% by March 2010 as inflation entered positive territory, posing a challenge to the apex bank to maintain a stable monetary policy, reports PTI, quoting RBI Deputy Governor K C Chakrabarty. Earlier, the RBI forecast inflation at 5% by March next.
He said that the procurement prices grew by 10% every year, resulting in food inflation of 10%. He admitted that RBI was facing challenges of promoting growth and controlling inflation.
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