The government is closely watching the price movements of five essential items - steel, cement, sugar, wheat and rice - besides global crude prices despite inflation dropping to 3.35%, finance minister P Chidambaram said today."Inflation is down because the supply side is good, and Reserve Bank is doing adroit management of money supply," Chidambaram added.With the fall in inflation, Chidambaram is also expecting interest rates to remain stable in the coming months."I don't expect any change (in interest rate) in the medium term," he said.
