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High food prices has been a cause for worry: PM

31 Oct 2011 Evaluate

Viewing that surging food prices, has been a cause of worry for the government and policy-makers, Prime Minister Manmohan Singh said that the immediate challenge before us today is how to sustain a high growth path, while keeping inflation in check. The international economic environment that we face today is not very encouraging and that RBI will continue to take the required fiscal and monetary measures to ease inflationary pressures.

Currently, growth in international economy is moderating, because of the slowdown in United States, Western European and Japanese economy. On the other hand, uncertainty in oil producing regions i.e. West Asia and North Africa has also increased the prices of oil and commodities in international markets.  In order to maintain growth, Manmohan gave stress on the consideration of all these factors while formulating the strategies for sustaining India’s growth processes.

On the high food inflation, the Prime Minister said, ‘high food price inflation has been a particular cause for worry in the recent months.’ Weekly food inflation measured by the Wholesale Price Index (WPI) surged to 11.43% for the week ended on October 15 compared to last week.

For controlling prices of food product, Prime Minister said, in the longer term the key to tackling rising food prices lies in increasing productivity and production in agriculture and allied sectors, by adding further he said government and the RBI will continue to take the required fiscal and monetary measures to ease inflationary pressures.

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