Finance Minister Pranab Mukherjee Wednesday voiced concern about high inflation but said it will ease due to a gradual fall in prices of food items.
"I am concerned about prevailing high rate of inflation," said Mukherjee, addressing a conference organised by an industry lobby.
"The CPI (consumer price index) inflation is high because of the high prices of food items. But I expect it to decline as the prices of food items are going down," he added.
India's annual food inflation dipped to 16.04 per cent for the week ended April 24 from a high of 19.95 per cent in December 2009, while the annual overall inflation was at 9.9 per cent in March.
The Finance Minister was buoyant about the economy's growth prospects in the current fiscal and said the Gross Domestic Product would increase to 8.5 per cent.
"I expect strong growth with the further improvement in business confidence," he told business leaders.