The november IIP data is very disappointed. The nov. industrial growth at 2.7%. Other side the food inflation rate at 19%. This is a critical position for a country and headache for RBI. In quarterly monatry policy, if RBI increase interest rate than the industrial growth may fall more. And if RBI not increase in interest rate the inflation may up. From last one year the policy of central govt. to control the inflation is only depand on interest rate increase. Some decision of govt. like increase in petro product prices help breakout in inflation rate. Now the position on both side either inflation or growth is uncomfortable. The govt. should take another step to control inflation like more food distribution by PDS at low rate and cut petro price to down transport expences.
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