India's inflation battle continues.

Because of what the Reserve Bank of India (RBA) calls, "effervescent demand," the RBA may take steps to raise interest rates further to curb inflationary pressures.

In a story that was posted on the website of The Gulf Daily News (Manama) the investment banking firm Goldman Sachs was quoted as saying that India is unlikely to experience a "hard landing."

The investment bank came to this conclusion after looking at India's recent economic history. When viewed against this history, said the bank, financial conditions were not considered to be very tight.

The website reported that as of the week ending March 31, 2007, India's official rate of inflation was 5.74 percent, down from 6.39 percent the previous week. This was the first time in three months the wholesale price index fell below 6 percent. The wholesale price index is India's most closely watched indicator or price behavior. The RBA's inflation target range is between 5.0 percent and 5.5 percent.