High inflation needs policy step: PMEAC

A high inflation will require monetary action on liquidity,a top economic adviser said on Thursday.

8220;Food prices must be controlled otherwise they have a tendency to lead to manufacturing inflation. That will require monetary action specially on the supply management side,8221; C. Rangarajan,chairman of the prime minister8217;s Economic Advisory Council,said on the sidelines of a conference.

He also said tax receipts were expected to pick up and the federal government was likely to maintain its fiscal deficit target.