Inflation can be contained at around 4 pc: FM

Hyderabad, Nov 3: Expressing confidence that the country would achieve a growth rate of over eight per cent for the fourth year in succession, Union Finance Minister P Chidambaram today asserted that the inflation trend in the economy can be contained at around four per cent.

Inaugurating the Indian Banking Conclave here, he said ''all sectors of the economy are doing well. The manufacturing sector has caught up with the service sector in growth and India will become not only a hub for the service sector but also for the manufacturing sector'' ''The worrying signal is the rise in the prices of essential commodities'', he said admitting that ''we have tumbled in managing the food stocks and as a result we were forced to import wheat. We have learnt lessons from last year. We will be able to ease inflation to a moderate rate of four per cent with a mix of monetary and fiscal measures. The RBI has already taken steps by increasing the repo rate modestly''.

Referring to the global economic growth, he said world output was expected to increase this year and the trend was good for India.

UNI