Washington: While expressing concern over rising global commodity prices, Finance Minister P Chidambaram today said India has been able to contain inflationary expectations even though headline inflation has gone above the tolerance level of five per cent.

"While inflationary expectations remain contained, headline inflation rose above the projected tolerance level of five percent recently, reflecting higher food, fuel and other commodity prices, particularly metals," Chidambaram said while speaking at the 7th meeting of the International Monetary and Financial Committee.

According to the latest government estimates, inflation soared to 7.41 per cent, the highest in the past 40 months.

He said emerging markets, including India, could find it difficult to sustain the economic growth if apprehensions about the US recession turn out to be correct and the growth in euro area slows more than currently anticipated.

"Another worrisome development is the emergence of global inflationary pressures. While growth expectations have dampened, inflationary expectations have not," he said.

He said though the overall external trade and current account situation was evolving as per expectations, strong "capital inflows and their volatility continue to pose significant challenges to macro-economic management."

Chidambaram also told the international community that India remained committed to "economic reforms and conduct macroeconomic policy to enable continuation of the growth momentum with stability."

Welcoming recent reforms in the voting pattern at the IMF, Chidambaram said, "We would urge member-countries whose support is crucial for implementing this key element to be open to a review of this issue in the next two or three years," he said.

Source : PTI