The Reserve Bank of India (RBI) has said that there are fears of persistent inflationary pressure in the food sector. This is impacting the whole economy and so pushing up the inflation across other areas as well.

The apex bank also said that because of this diesel de-regulation, as asked by many of the oil sector quarters, is not possible in the near future. The same view was supported by Oil Secretary S. Sundareshan. Doing so at this juncture is unreasonable.

Talking to media, Deputy Governor Subir Gokarn said, "Persistent price increases in commodities for which there are less effective substitutes, with other things remaining equal, will raise the potential rate of inflation over a period of time".

It also means that the actual inflation or interest rates are going to be higher in case such an increase does not take place.

Such comments by Gokhran has added to the expectations that the rate hike will take place on November 2. This is necessary, or so it seems, since the inflationary spiral needs to be curbed.

Inflation has been the biggest to Indian economy and growth.