Inflation major challenge for government, admits Prime Minister

By IANS,

New Delhi : Prime Minister Manmohan Singh Tuesday said curbing inflation and maintaining growth momentum was a major challenge for the government.


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In an interaction with editors here, the prime minister said his government had taken a number of measures to rein in inflation and hoped prices would moderate with time, national television reported.

“It’s not a typical inflation, it’s influenced by global factors,” Singh was reported as saying.

India’s headline inflation during the week ended June 28 touched a 13-year high of 11.89 percent, while the growth rate of industrial production decelerated to a six-year low of 3.8 percent.

In view of soaring inflation, economists have expressed doubts if India would log an eight percent growth this fiscal, compared to nine percent last year.

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