My response is that we should accept the fact that the economic environment will be different and inflationary pressures will be substantial. At higher levels of economic growth, we should accept a higher range of inflation rates. We will have to live with a high inflation environment.
But the policy challenge is not to allow the rate of inflation to spiral out of control and become entrenched in double digit figures. We should do all we can to keep it within ranges of single digit mark. But at an average annual economic growth rate of around 9.0% and above, the range of price stability has to be redefined.