Inflation in India has remained above the Reserve Bank's 2 per cent-6 per cent tolerance band for eight consecutive months and rose to 7 per cent in August, driven by surging costs of food items.
Chief Economic Advisor (CEA) V Anantha Nageswaran on Tuesday said India is not defending the rupee and the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends.
Responding to a question on rise in inflation in August, he said the price rise is also partly due to base effect.
"And, I think because of the market reading the sowing data as something that is signalling a future... which is probably misplaced.
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