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PM to hold meet over high inflation today

Last updated: 15 October 2011


Prime Minister Manmohan Singh has called a meeting on Saturday to discuss policy options with regard to slowing economic growth and high inflation.


"The meeting (with PM) is on the current economic situation. We will have a discussion on growth and 
inflation, and consider the policy options in this regard," Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan said.

Persistently high inflation has forced the Reserve Bank of India (RBI) to increase the key policy rates 12 times since March, 2010.

Headline inflation remained close to the double-digit mark at 9.72% in September as food products, fuel and manufactured goods grew costlier, a development that is likely to prompt RBI to continue with its policy of monetary tightening.

Food inflation stood at 9.32% for the week ended October 1, as prices of major kitchen staples continued to pinch consumers' pockets.

India's economy grew by 7.7% in the first quarter, the slowest growth in 18 months, against 8.8% in the same period in the previous fiscal.

Industrial output also remained subdued for the second consecutive month in August, registering a growth of just 4.1%.

finance minister Pranab Mukherjee today in Paris said Indian economy is likely to grow by 8-8.2% this fiscal.

 

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