A high inflation will require monetary action on liquidity, a top economic adviser said on Thursday.
"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," C. Rangarajan, chairman of the prime minister'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.
