Inflation Can Effect Growth, Says Montek

Planning Commission deputy chairman Montek Singh Ahluwalia said that Planning Commission deputy chairman Montek Singh AhluwaliaIndia is not the only country to be affected by the inflation. All countries are facing economic problems due inflation. He emphasized that world is in middle of a dramatic change in the world price distribution. Hence Indians should get used to the high energy prices.

"Controlling inflation is a short term challenge and would not affect growth rate on a medium to long term basis," Ahluwalia said, adding, "Though this fiscal, we may see a slightly lower growth rate... at about 8%... or a little less than that, say around 7.9%... that is not bad," he said.

However, he added, "If properly handled, inflation should not affect average growth objective of 9%. He said that surging oil prices have pushed up inflation not only in India but also in other countries.

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