Prime Minister Manmohan Singh said inflation would come down to 5-6% by December and projected an 8.5% economic growth for this fiscal.
“Price continues to be a matter of deep concern. The government attaches highest priority to containing inflation so there is no distress to the common man,” he said.
India’s inflation in April was estimated at 9.6%, as food prices continued to remain at elevated levels.
Inflation in manufactured products, which has reached nearly 7%, has emerged as the latest worry for policy makers mirroring signs that the spectre of price rise have lengthened across the broader economy.
Singh said the Centre, would closely monitor the situation and together with states “take all corrective steps to bring down prices and protect the vulnerable sections of society.”
Singh said the economy would grow by 8.5% in 2010-11 but it was important to increase the level of investment in social and economic infrastructure and also agriculture.