Tremendous pressure to fight inflation: FM

Finance Minister P Chidambaram today said the government is under tremendous pressure to fight inflation due to the surge in international commodity and fuel prices.

"There is tremendous pressure on government to fight inflation," Chidambaram told Parliamentarians.

International commodity and fuel prices have increased tremendously during the past few years, and it has totally changed the rules of the game, he said. There is still a mismatch between demand and supply of food articles, he added.

"Our intention is to ensure and make all efforts to sustain growth of more than 8% and close to 9% in 2007-08," Chidambaram said.

In the 1990s, crude oil price was at $37 per barrel, and it has nowreached $111 per barrel, he said, adding, "aluminum, nickel, lead, iron ore and steel prices have increased."