New Delhi: India’s domestic inflation is partly fuelled by the policy actions in developed countries, finance minister Pranab Mukherjee said on Wednesday.
“Inflation challenge is an offshoot of policy response in developed countries to the crisis,” he said.
“We are committed to moderate levels of inflation that had led to high interest rates.”
The Reserve Bank of India (RBI) has raised rates 11 times since March 2010 to tame high inflation, but July headline inflation at 9.22% was way above the RBI’s comfort zone.
India’s economy grew 7.7% in the April-June, its weakest pace in six quarters but outperformed even gloomier predictions.