India’s inflation to remain stable and growth on track: finmin

Aug 30 (Reuters) – Indian inflation will remain stable in the coming months, despite short-term increases in the prices of certain foods, Finance Minister Nirmala Sitharaman told the Economic Times newspaper in an interview.

Food price inflation rose to 11.5% in July, its highest level in more than three and a half years, while India will receive its weakest monsoon rains in eight years, adding to the woes of the Prime Minister Narendra Modi in an election year.

But economic growth is likely to be strong at least until the end of the year, as India approaches the festive season, when spending typically picks up, Sitharaman said in the interview published on Wednesday.

“Until after the new year, there would be enough reason to believe that the demand situation is only going to increase,” he said. “So hopefully the next quarter will go well as well.”

India will release GDP data for the April-June period on Thursday. Economic growth is projected to reach 7.7%, the fastest annual pace in a year, a Reuters poll presented.

Asked about an investor report hindenburg about him adani group, Sitharaman noted the role of short sellers in fueling volatility in a stock.

“But what I’m seeing is that SEBI, with what it does, is able to sort the wheat from the chaff,” he said, referring to the market’s regulator, the Securities and Exchange Board of India.

“The regulatory tools that emerge from this, if used properly, can lead to better corporate governance,” he added.

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