New Delhi, Dec 8 (TIWN) Reduction in Central excise as well as state VAT on petrol and diesel is expected to ease domestic inflationary pressure, RBI Governor Shaktikanta Das said on Wednesday.

This uptick, he said mainly reflected a spike in vegetable prices due to unseasonal rains in some parts of the country.  Besides, Das cited hardening of international energy prices that have kept domestic LPG and kerosene prices elevated for nearly three quarters, edging up fuel inflation to 14.3 per cent in October.  "The persistence of high core inflation since June 2020 is an area of policy concern in view of input cost pressures that could rapidly be transmitted to retail inflation as demand strengthens."