By IANS,
New Delhi : Measures taken by the government to tame inflation will take some time to have their effect but the country would have a “moderate rate of inflation” in the next two months, Finance Minister Pranab Mukherjee said Wednesday.
“High inflation is a matter of concern. Measures taken to tame inflation will take some time. I think in next two months we would have moderate rate of inflation,” Mukherjee told reporters on the sidelines of an event here.
India’s annual rate of inflation rose to 8.56 percent in January from 7.31 percent the month before. Food price inflation was at 17.94 percent for the week ended Jan 30.
Reserve Bank of India also raised its projected annual inflation rate at the end of this fiscal to 8.5 percent from 6.5 percent.
Mukherjee said India’s economy may grow at more than 8 percent during the next fiscal and at 7.5 percent during 2009-10.
Concerning fiscal deficit, the finance minister said the number would only be out when he presents the budget. “You will have to wait till then,” he said.
India’s fiscal deficit (FD) during the second quarter reached 7.9 percent of the GDP. It is expected to be higher at 6.8 percent of the GDP as government had borrowed a record Rs.4.51 trillion. India’s FD last fiscal had clocked 6.7 percent.