India’s annual inflation rate remained at three-year highs above 7 per cent in mid-April, data showed on Friday, leaving the Reserve Bank of India with a dilemma over how to act at a review next week amid signs of slowing growth.

The price rise is expected to prompt Reserve Bank of India (RBI) to further tighten money supply in its annual credit policy slated to be announced on April 29.RBI has already increased CRR, the mandatory amount that banks keep with the central bank, by 0.5 per cent to check money supply. The hike will come into effect in two parts on April 26 and May 10. It will take the ratio of banks’ deposits parked with the central bank to 8 per cent.

The data is the last before the Reserve Bank of India (RBI) reviews policy on Tuesday and follows the surprise CRR hike .

Meanwhile, Finance Minister P. Chidambaram told parliament on Friday inflation would moderate over time and every measure within the power of the Government had been taken and would be taken to calm inflation.

The Government has already taken a flurry of steps in recent weeks to curb inflationary pressures including scrapping import duties on edible oils, banning exports of non-basmati rice and the much criticized CRR hike.