Steps have been taken by the Central Bank to calm inflationary pressures. These steps are considered to be in line with government policies. The aim of these steps is to send the strong signal to deal with the inflation as stated by Finance Minister Pranab Mukherjee on Tuesday.

There has been a rise in policy rates of the RBI on Tuesday. It has increased in its March-end inflation which is likely to be 7% earlier it was 5.5%. Moreover it has warned that there could be a likely spillover of high food prices to a universal inflation.

According to him, the RBI will take steps to tackle the inflationary pressure which is in the system. They will not only control inflation but also give strong signal. Supply management has to be tackled. The delay in the supply has to be checked.

The inflation would settle in the 6% to 6.5 % range as stated by policymakers earlier. The finance minister has said that inflation in food items is a main concern. It was unbelievable that there would be such a rise.