JOIN USHigh inflation may not be generating the same kind of “unrest” that it used to in the past as rural wages have been rising at a faster clip annually for the past five years, Reserve Bank Deputy Governor Subir Gokarn said.
To tame inflation, the Reserve Bank since March 2010 has announced 13 consecutive rate hikes. However, inflation is still above the RBI’s 5 per cent comfort level.
Gokarn said that rural wages have actually been rising by about 20 percent annually for the last five years.
Addressing a management event here, Gokarn said, it’s “puzzling” to understand why the recent episodes of high inflation, particularly driven by food prices, have not evoked the kind of sharp provocation that had rocked the nation many times in the past 50-60 years.