Inflation hits new high, worries Chidambaram (Second Lead)

May 16th, 2008 - 6:34 pm ICT by admin  

A file-photo of P. Chidambaram

New Delhi, May 16 (IANS) With India’s wholesale inflation, the weekly measure of price trends, rising to 7.83 percent for the week ended May 3, the government may take more steps to control prices. The weekly measure of price trends rose to a three-and-a-half-year high of 7.83 percent for the week ended May 3, up from 7.61 percent in the week preceding it.

“These are difficult times. The movement from 7.61 percent to 7.83 percent is indeed worrisome … It’s a matter of concern and we reserve the right to take more administrative measures,” Finance Minister P. Chidambaram told reporters on the sidelines of an industry event here.

“Our expectation is that inflation will moderate. We are still waiting for the steel and cement price reduction to come into force … Even behind the dark clouds there is a silver lining,” he added, urging patience.

The index for food products under the manufactured products list rose by 0.7 percent due to higher prices of khandsari, oil cakes, coconut oil and flour. However, prices of jaggery, rice bran oil, rape and mustard oil, cottonseed oil and others declined. The index comprising fuel, power, light and lubricants also rose by 0.8 percent, data released by Ministry of Commerce and Industry showed Friday.

The annual rate of inflation had stood at 5.74 percent in the corresponding week a year ago.

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