New Delhi: India’s high food inflation is a serious concern, deputy chairman of the Planning Commission Montek Singh Ahluwalia said on Friday.
India’s food inflation accelerated to 10.05%, its highest in nearly six months, in the year to 20 August, government data on Thursday showed.
Ahluwalia also said India’s economy is expected to grow at around 8% in the current fiscal year to March 2012.
“Even if we grow at 8% this (fiscal) year, target of 9% (growth) from next financial year for the next five years is feasible, but not easy,” Ahluwalia said.
India’s economy grew 7.7% in the quarter through June, its weakest pace in six quarters, but outperformed even gloomier predictions, reinforcing expectations the central bank will keep raising interest rates to put a lid on inflation.