New Delhi: Reserve Bank of India (RBI) governor Bimal Jalan on March 16 said that the outlook with regard to inflation was "very good" and the country will not face any problem on account of the rising oil prices in the international market.

"It's very good. In the months ahead, we don't see any problem at all of any kind," he told reporters when asked about the inflation rate outlook in the country.

Inflation rate shot up to over 1.6 per cent on account of hike in prices of kerosene and cooking gas coupled with costlier primary articles during the week ended March 2.

The inflation rate, based on Wholesale Price Index (WPI) for all commodities, was 1.32 per cent in the previous week and 6.79 per cent a year ago.

The RBI governor's statement after the post-Budget board meeting with the Finance Minister comes amid burgeoning international crude oil prices.

Meanwhile, the government has rolled back the hike in liquefied petroleum gas (LPG) prices by Rs 20 per cylinder. The 16-19 per cent hike in LPG and kerosene had pushed up the overall fuel price index and the inflation rate.

Jalan did not comment on any possible bank rate cut. On March 15, he had said that the central bank was in no hurry to slash rates, despite a 0.5 per cent reduction in rates of small savings in the Budget.

PTI