New Delhi: Fighting unacceptably high inflation is the most important issue that needs to be addressed by the government, finance minister Pranab Mukherjee said on Friday.
“There is no doubt that inflation is the most important issue which is to be addressed adequately,” Mukheree told lawmakers as part of a debate on the annual budget for 2011/12 that was presented on 28 February.
Asia’s third-largest economy is expected to expand 8.6% in the current fiscal year that ends in March. But India has been grappling with soaring prices for the past year that have prompted seven rate hikes by the central bank since March 2010, with another raise expected next week.
Prime Minister Manmohan Singh’s Congress party faces elections in five states in April amid criticism over inflation and its handling of several high-level corruption scandals.
India’s headline inflation is expected to ease slightly to 7.79% in February 2011, according to a Reuters poll released on Friday.