New Delhi October 27:
Amid expectations that RBI may raise short-term rates to contain inflation, the government admitted that it is difficult to bring down the rate of price rise to an ideal level of 4-5 per cent, while the central bank said it is a challenge to keep it under check.
"I will try to bring it (inflation) down through whatever mechanism we have...it would be ideal if we have 4-5 per cent, but may be difficult. But I do feel that annualised inflation rate would be around six per cent," Finance Minister Pranab Mukherjee said in Economic Editors'Conference.
Mukherjee identified rising prices as a major concern, although inflation has declined to 8.6 per cent from double digits in June. Inflation, which has emerged as a big political issue, was 8.6 per cent in September. However, food inflation was 15.
Amid expectations that RBI may raise short-term rates to contain inflation, the government admitted that it is difficult to bring down the rate of price rise to an ideal level of 4-5 per cent, while the central bank said it is a challenge to keep it under check.
"I will try to bring it (inflation) down through whatever mechanism we have...it would be ideal if we have 4-5 per cent, but may be difficult. But I do feel that annualised inflation rate would be around six per cent," Finance Minister Pranab Mukherjee said in Economic Editors'Conference.
Mukherjee identified rising prices as a major concern, although inflation has declined to 8.6 per cent from double digits in June. Inflation, which has emerged as a big political issue, was 8.6 per cent in September. However, food inflation was 15.
