High growth leading to price pressures: Pranab Mukherjee

India's high economic growth is leading to inflationary pressures, finance minister Pranab Mukherjee said in parliament today.

Asia's third largest economy is seen expanding 8.5% in the year to end-March 2011. Wholesale price inflation in June stood at 10.55% and chief statistician of India TCA Anant said last month that July headline inflation could be around 11%.

The Reserve Bank of India raised interest rates more forcefully than expected last week, signalling its urgency to stamp on inflation.

Mukherjee was replying to a parliamentary debate on price rise, a political hot potato that has given the opposition a handy tool to attack the government with and block proceedings in the house since its opening last week.