'High inflation cause of concern, govt to remain vigilant'
Although satisfied with the possibility of India achieving 8.75% growth in the current fiscal, finance minister Pranab Mukherjee today said that inflation continues to remain a cause of concern.business Updated: Dec 12, 2010 02:08 IST
Although satisfied with the possibility of India achieving 8.75% growth in the current fiscal, finance minister Pranab Mukherjee said on Saturday that inflation continues to remain a cause of concern.
"Inflation has been high and a cause of concern... government will continue to remain vigilant on the price front", he said, addressing the Indian Business Leaders Award function organised by private channel CNBC TV18.
Attributing high inflation to domestic drought last year and rising global prices in the commodity market, Mukherjee said the silver lining is that food prices have started coming down.
While overall inflation in October was 8.58%, food inflation for the week ended November 27 was 8.69%. The inflation, according to the RBI was above the comfort level of 4-5%.
On economic expansion, Mukherjee said Mid-Year Analysis presented in Parliament recently had projected the GDP growth rate at 8.75%, on the back of 8.9% recorded in the first half of the current fiscal.
Following the global economic crisis, the growth rate slipped from 9% to 6.7% in 2008-09. It, however, picked up to 7.4% in 2009-10 and is all set to go up in the current fiscal.