Boston : The Reserve Bank has said sustaining high level of economic growth is difficult without controlling inflation. Speaking on the ''Indian Economy- Progress and Prospects'' here, RBI Executive Director Deepak Mohanty said, "Without bringing down inflation from the current level it will be difficult to sustain a high level of growth. This will require greater monetary-fiscal coordination and alleviation of supply constraints." He said the demand-supply mismatches in case of protein- based items as well as fruits and vegetables have resulted in price rise of these items. "There is a need for another technological breakthrough to give fresh impetus to agriculture," Mohanty added. Food inflation, which account for 15 per cent in the overall inflation, was at 8.84 per cent for the week ended September 10. Inflation remained over 9 per cent since December, 2010. It touched a 13-month high of 9.78 per cent in August. The Reserve Bank of India has raised key interest rates 12 times since March 2010 to contain inflation. Corporate India has said that frequent rate hikes, which have led to an increase in the cost of borrowings, are hindering fresh investments and affecting economic growth. The country''s economic growth was 7.7 per cent in the April-June period, the slowest in six quarters. Growth in industrial production also fell to 21-month low of 3.3 per cent in July. Mohanty said in the current fiscal economic growth is expected to be around 8 per cent. "In 2011-12 growth is expected to be about 8 per cent," he said. He emphasised on the need for the government to revert to its pre-crisis fiscal consolidation path without compromising on the quality of fiscal correction.
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