Inflation At 5.6 Pc Ideal For The Economy Of India: Pranab

Among all the efforts of government and Reserve Bank of India to contain inflation, now hovering around 9 percent, the Finance Minister Pranab Mukherjee said on Tuesday that it would be good for the economy if managed level of 5.6 percent.

"To be quite frank, it should be acceptable and what may be a tolerable level of inflation is very difficult to define. However, in our economy, we believe that if we can keep inflationary pressures in the 5-6 percent would be ideal, but we can live with 6 to 6.5 percent, "said Mukherjee, whereas in the Trade Commissioner of India and the United States here.

He added this year, inflation slightly.

Headline inflation rose to 9.06 percent in May from 8.66 percent the previous month, fueling fears that high prices could damage economic growth, reports PTI from Washington.

Mukherjee said that the current level of inflation due to high prices of global commodities. "(Inflation) Not because of supply problems in the nearby agricultural front ... But international prices of raw materials, including food and fuel, is causing serious limitations, "he said.

Mukherjee said food prices began to decline and the government has also tried to mitigate the impact of rising crude oil prices by sacrificing central taxes. Moreover, state governments were also asked to reduce their taxes on fuel. "I hope it will have some influence. But this (inflation) will be a big problem and it would have its impact on global growth scenario," he said.