FM confident of controlling inflation under 5%

Finance Minister P Chidambaram is confident of beating back inflation below the 5% level even as he said that the price-line had shot up due to supply side disruptions of certain essentials.

On inflation based on the wholesale price index touching 5.01% for the week ended August 26, he said though it was technically above 5%, this was not something to be alarmed about and the government would do whatever needs to be done to bring it below this level.

"Its our intention to keep it below 5%. There has been some supply side disruptions of vegetables and fruits etc. There continues to be some pressure on wheat and pulses (as well)," Chidambaram told reporters here.

He said the Ministry of Food and Consumer Affairs was best equipped to address issues of supply of wheat and pulses. "Given the difficulties on supply side for wheat and pulses, we will look at whatever steps to be taken to keep inflation below 5%."