The continuously falling rupee would bring pressure on the country's inflation, the Reserve Bank of India (RBI) has cautioned on August 22. However, the apex bank provided some hope on economic growth by stating that it expected the inflation to be more than the five per cent of last financial year.    

RBI said stressed over the need for close attention to food management and taking policy action to address structural factors that constrain agricultural supply responses...the pass-through of the depreciation of the rupee’s exchange rate by about 11 per cent in the first four months of 2013-14 is incomplete and will put upward pressure, as it continues to feed through to domestic prices.    

The Reserve Bank said that growth recovery is possible and can take shape later in 2013-14, but is predicted on better governance, removal of supply constraints and maintenance of stability. The central bank added despite new risks emerging on the global and domestic economic fronts, the real gross domestic product growth outlook for 2013-14 was better than in 2012-13, owing to growth-supportive measures taken by the government and the good southwest monsoon.