Telecom tariff hike may add to inflation, cautions RBI Governor Das

Raising concerns of higher inflation in the near term, Reserve Bank Governor Shaktikanta Das on Thursday observed that recent announcements by the telecom operators to raise tariffs will add to the inflation rate in the country.

In a surprise move, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.15 per cent, citing high rate of inflation and a likely further increase in food inflation.

Addressing the media post the policy announcement, Das said: “With regard to the core inflation, it is expected to remain in the curent zone as it is, below 4 per cent… again some evidence shows that certain decisions relating to telecom and others, which may play out. They may have some impact on the core inflation. It is expected that inflation will come to about 3.8 per cent in the Q2 of next year.”