8216;High inflation unavoidable in short term8217;

Reserve Bank of India governor Y V Reddy said the threats are from developed economies. 8220;Threats to the global economy are emanating from advanced economies in sharp contrast to earlier crises which stemmed from the emerging world,8221; Reddy said in a speech delivered at the meeting of the Task Force on Financial Markets Regulation in the UK. 8220;In recent weeks, concerns over inflationary pressures have taken the centrestage, consequently, the policy dilemmas have become more acute at the current juncture. The most urgent and short-term priority for central bankers at the current juncture seems to be to calm the nerves about inflation or to anchor inflation expectations, with an implicit recognition that a somewhat elevated headline inflation in the short-term may be difficult to avoid,8221; Reddy said.