India PM says inflation "serious threat" to growth

NEW DELHI Fri Feb 4, 2011 1:21am EST

NEW DELHI Feb 4 (Reuters) - Prime Minister Manmohan Singh said on Friday India's high inflation posed a "serious threat" to the country's growth momentum, and was driven by supply-side shortages.

India's food inflation accelerated for the second straight week on rising prices of onions, putting pressure on headline inflation and reinforcing expectations of more monetary action this year to tame inflationary expectations. [ID:nSGE71203Q] (Reporting by Krittivas Mukherjee and Abhijit Neogy; editing by Malini Menon)

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