Inflation is still very high and unacceptable: Pranab Mukherjee

Inflation in India is still "very high and unacceptable," Finance Minister Pranab Mukherjee told reporters on Saturday.

Headline inflation for August rose to 9.78%, its highest level in more than a year, data showed on Wednesday.

Mukherjee also said he expects lending to farmers to be in excess of 5 trillion rupees in the 201112 fiscal year.

The Reserve Bank of India, on Friday, lifted its key lending rate, called the repo rate, by 25 basis points to 8.25%, in line with expectations, as it persisted its fight with inflation.