Inflation at 44-month high of 7.83%

Fri, May 16 07:45 PM

New Delhi, May 16 (PTI) An unabated rise in inflation to 44-month high of 7.83 per cent has added to the miseries of the government as Finance Minister P Chidambaram warned of more administrative steps in case steel and cement prices do not come to the desired level. "As I said we are waiting for steel and cement (prices) reductions to come into force but we always reserve the right to take administrative measures if they are not enough.

But for the time being we simply have to remain a little patient," Chidambaram said. Rise in inflation during the week ended May 3 is "indeed worrying", the minister said but was quick to add that the decline in prices in primary articles group is a silver-lining amidst dark clouds.

Although the rising prices of crude oil has been a major factor (on which government has no hold) in the price rise in recent weeks, it has put the policy planners, finance ministry and the Reserve Bank of India, into a dilemma as to whether to sacrifice the economic growth to check price rise. Amid speculation that general elections are not far away, the government is taking every possible measure to keep the prices under check and also not to derail the economy from high growth trajectory.

So far as the rise in inflation in fuel, power, light and lubricant category is concerned, the Finance Minister said "unless crude prices decline I am afraid we are stuck with high inflation in that group." PTI.

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