Food prices fuel inflation pressures: RBI

Rising food prices are fuelling concerns of broader price pressures in India, and the policy challenge is to address the supply-side constraints, a deputy governor at the Reserve Bank of India said on Monday.

"Since supply shocks take time to taper off, there is a risk that high inflation in essential commodities could affect inflation expectations over time and give rise to generalised inflation," Shyamala Gopinath said in a speech delivered in Bangalore on Monday.

The Reserve Bank released her speech on Tuesday.