FM confident about reigning in prices, inflation

Expressing confidence about checking soaring prices, Finance Minister P Chidambaram today said inflation would be controlled step by step following a series of measures announced by the Reserve Bank of India.

Admitting that inflation had not come down in the last six weeks, he said: "It is 6.1, 6.3..6.05..6.4 per cent etc... not a big rise in inflation nor a steep fall. It has remained above 6% on an average. I agree it is there."

Inflation surged to 6.46% during the week ended March 3 as against 6.10% in the preceding week.

Similar inflation rates were witnessed in 2000-01 continuously for 48 weeks, and for 22 weeks it even crossed 7%, Chidambaram told reporters at Sivaganga, about 60 km from here, after reviewing various on-going projects in the district.

The Finance Minister said that apart from controlling inflation, the government had initiated steps to control prices of wheat, pulses and rice and had asked the states to fix the stock limit for the three commodities.

"Unfortunately, only five states had started dehoarding operations and had fixed stock limits. The others, including Tamil Nadu, had not fixed any stock limits, he said."