"We are not at all happy with the rate of inflation. It should come down. The government can take more measures if needed," he said at an event here today.
However, Ahluwalia cautioned against taking administrative measures. "If you resort to administrative measures, it would have a damaging result," he said.
Ahluwalia said the country is likely to record a growth of 8 per cent during the current fiscal.
According to the RBI annual credit policy, Indian economy would grow between 8-8.5 per cent during the current year. During 2007-08, the economy expanded by 8.7 per cent.
The perception that anti-inflationary measures are anti-growth is wrong, he added. "We should give priority to bring inflationary expectations down. If we do that it will stimulate growth," he added.
Inflation touched a 42-month high of 7.57 per cent for the week ended April 19.
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