Food articles inflation in the WPI continues to remain at high levels (6 per cent). Reflecting high food inflation, various measures of consumer price inflation – which have a relatively higher weight for food items vis-à-vis WPI – also remain at elevated levels (around 10-11 per cent).
Second, the interest rate on small savings continues to be administered and any reduction in interest rates on bank deposits can make bank deposits  20  BIS Review 54/2009  relatively unattractive, which could lead to some deceleration of growth in bank deposits. Third, the bulk of banks’ time deposits continue to be at fixed interest rates.