Finance Minister says concerned about inflation

London, June 27: Finance Minister Palaniappan Chidambaram said on Wednesday that he was concerned about inflation, but it was important not to use policies that would dampen economic growth. In answer to a question about inflation at an investment conference, Chidambaram said, ''Yes, we are concerned,'' but added, ''There is no reason why the growth story can't keep going for 10-15 years, as long as the growth story is maintained and growth is averaging 9 per cent over the next 10 years.'' Chidambaram also said it was important not to 'fall into policies' that dampened economic growth.

Recent data showed India's wholesale inflation fell to its lowest in 14 months at 4.28 per cent in the 12 months to June 9, well below a two-year high of 6.69 per cent hit in January.

Chidambaram said last week that monetary tightening measures may have worked but inflation must be watched for the next 4-5 weeks.

REUTERS

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