High inflation needs policy step: economic adviser

High inflation needs policy step: economic adviser

New Delhi: A high inflation will require monetary action on liquidity, a top economic adviser said on Thursday.

“Food prices must be controlled otherwise they have a tendency to lead to manufacturing inflation. That will require monetary action specially on the supply management side," C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said on the sidelines of a conference.

He also said tax receipts were expected to pick up and the government was likely to maintain its fiscal deficit target.

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