Mumbai, May 22 (IANS): Inflation remains a major short-term challenge despite a series of monetary and fiscal measures taken to curb it, Finance Minister Pranab Mukherjee said Saturday.

"Our major challenge in the short-term is inflation. Inflationary pressures persist both from higher global commodity prices and domestic structural demand-supply imbalances in several commodities," Mukherjee said while addressing the 64th annual general meeting of Indian Banks' Association here.

He pointed out that the government and the country's central bank, the Reserve Bank of India, had taken a series of measures to control inflationary pressure.

"The government and the Reserve Bank of India have taken measures to bring down inflation to acceptable levels," he said.

Inflation has remained stubbornly high for the last year and a half. The wholesale price inflation grew 8.66 percent in April. Food inflation also remains stubbornly high and was recorded at 7.47 percent for the week ended May 7.

The finance minister said the other major concern facing the India economy was to sustain growth momentum in medium term.

Sustaining the growth momentum requires "pursuing a path of fiscal prudence along with implementation of reforms that remain, including in the financial sector," said Mukherjee.