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India Plan Panel: Containing Inflation To Pose Challenges

NEW DELHI -(Dow Jones)- Containing inflation expectations will pose major policy challenges in the remaining months of the current financial year through March, India's Planning Commission said Wednesday.

"Food prices, especially, could be under pressure if the demand and supply situation is not managed effectively," the country's top policy think tank said in a note.

India's economic growth could slow to 5.5% from the panel's previous forecast of 6.3% in the current financial year if farm output falls more than its forecast of 2.5%.

India's economy grew 6.7% in the previous financial year, while the inflation rate based on the wholesale price index rose to 1.51% in the week to Oct. 17.

-By Mukesh Jagota and Prasanta Sahu, Dow Jones Newswires; 91-11-4356-3311; neelabh.chaturvedi@dowjones.com

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