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This is with reference to the editorial "Operation mop-up" (Business Line, December 11). The Reserve Bank of India has raised the CRR from 5 to 5.5 per cent in a bid to curb inflation.

But the price pressure comes mainly from food articles on the supply side. And the demand for basic food requirements such as wheat cannot be reduced by curtailing the money supply.

When the supply improves with good harvest and government action, the pressure will be less.

A Jacob Sahayam

Thiruvananthapuram

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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