Our foreign reserves remain healthy at around $ billion (or just under 5 months of imports) and inflation has been  2  BIS central bankers’ speeches  trending downwards. Furthermore, bank credit has picked up and new loans in the first few months of 2012 are higher than in the comparable period last year.
However, vigilance against a wage-price spiral has heightened, mainly in advanced economies. In addition, there is concern in global financial and capital markets over whether it is possible to contain inflation and maintain economic growth at the same time. The second factor is developments in the situation surrounding Ukraine and associated movements in prices of commodities, including grains.