Observing that high food price inflation has been a particular cause for "worry", Prime Minister Manmohan Singh today said Government and RBI will continue to take the required fiscal and monetary measures to ease inflationary pressures.
As food inflation spurted to a six-month high, Singh said the immediate challenge before the country is how to sustain a high growth path, while keeping inflation in check. Singh made these remarks at the closing session at the Conference of Governors.
Food inflation in the week to October 15 accelerated to 11.43 per cent propelled by soaring vegetable prices. "High food price inflation has been a particular cause for worry in the recent months," the Prime Minister said. Singh said in the longer term the key to tackling rising food prices lay in increasing productivity and production in agriculture and allied sectors.
"We have taken a number of steps in this direction in the Eleventh Plan and these will be further strengthened in the Twelfth Plan," he said. "Meanwhile, our Government and the Reserve Bank of India will continue to take the required fiscal and monetary measures to ease inflationary pressures," he added. Singh also lamented the slowdown of the world economy, observing that the international economic environment was "not very encouraging".