Inflationary pressures to continue: RBI

The Reserve Bank of India on Monday said inflationary pressures because of oil and food prices are likely to continue, giving an indication that monetary policy could be tightened further when it comes for review on Tuesday. "As the potential inflationary pressures from international food and energy prices appear to have amplified and, by current indications, are likely to remain so for some time," the RBI said in its review of Macro and Monetary Development for the first quarter of the current fiscal. The Reserve Bank of India further said that international crude oil prices are likely to remain high in view of the relatively tight demand-supply position. The central bank said the recent increase in petroleum prices by the government was not sufficient in view of the rising global crude oil prices. "This suggests that the pass-through in case of administered petroleum products is still incomplete," it said.