India’s Patra Says Early Easing to Push Inflation Out of Control

Repeated food price shocks are pushing up India’s inflation rate and it may “run out of control” if monetary policy is eased early, according to Reserve Bank of India Deputy Governor Michael Patra.

The recent moderation in core inflation, which excludes volatile food and fuel prices, is the result of the central bank’s policy, Patra wrote in the RBI’s August bulletin published Monday. Monetary policy is the “only active disinflationary agent in the economy,” he said.