Chidambaram says govt to take stronger steps to tame inflation
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K.Karthik Raja
Jun 20, 2008, 5:45:01 AM6/20/08
to Kences1
Chidambaram says govt to take stronger steps to tame inflation
Friday, Jun 20
NEW DELHI - Finance Minister P. Chidambaram today said the
government
will take stronger steps on both demand and monetary sides to curb
galloping
prices.
India's headline inflation, as measured by the Wholesale Price
Index, rose
to a 13-year-high of 11.05% for the week ended Jun 7 compared with
8.75% a
week ago.
The spurt was primarily due to increase in auto fuel and cooking
gas
prices with effect from Jun 5.
"This is a difficult time and I hope the people will understand
the
difficulties we face. We will have to take stronger measures on the
demand as well as on the monetary side," Chidambaram told reporters.
"We will try and address it (inflation) to the best of our
ability," he
said.
The government and the Reserve Bank of India have already taken a
series
of measures, including duty cuts and hike in interest rates.
However, the steps have not had any impact on easing inflation so
far,
and it has risen to 11.05% from 3.83% at the end of 2007.
Chidambaram said
94% of the 1.8% increase in the index for week to Jun 7
was due to hike in administered prices of petroleum products on Jun 5.
"I had warned of a double-digit inflation at the Cabinet on (Jun
4) where
the decision to increase prices of petrol, diesel and cooking gas was
taken,"
he said.
On Jun 4, the Cabinet Committee on Political Affairs gave the go
ahead
to oil marketing companies to raise prices of petrol by 5 rupees per
L, diesel
by 3 rupees per L and cooking gas by 50 rupees per cylinder.
The finance minister said the hike in auto fuels and cooking gas
was
unavoidable, as the revenue losses of state-owned oil marketing
companies were
mounting.
The revenue losses of oil marketing companies are likely to touch
400 bln
rupees in 2008-09 even after the price hike and duty cuts. End
.
Friday, Jun 20
NEW DELHI - Finance Minister P. Chidambaram today said the
government
will take stronger steps on both demand and monetary sides to curb
galloping
prices.
India's headline inflation, as measured by the Wholesale Price
Index, rose
to a 13-year-high of 11.05% for the week ended Jun 7 compared with
8.75% a
week ago.
The spurt was primarily due to increase in auto fuel and cooking
gas
prices with effect from Jun 5.
"This is a difficult time and I hope the people will understand
the
difficulties we face. We will have to take stronger measures on the
demand as well as on the monetary side," Chidambaram told reporters.
"We will try and address it (inflation) to the best of our
ability," he
said.
The government and the Reserve Bank of India have already taken a
series
of measures, including duty cuts and hike in interest rates.
However, the steps have not had any impact on easing inflation so
far,
and it has risen to 11.05% from 3.83% at the end of 2007.
Chidambaram said
94% of the 1.8% increase in the index for week to Jun 7
was due to hike in administered prices of petroleum products on Jun 5.
"I had warned of a double-digit inflation at the Cabinet on (Jun
4) where
the decision to increase prices of petrol, diesel and cooking gas was
taken,"
he said.
On Jun 4, the Cabinet Committee on Political Affairs gave the go
ahead
to oil marketing companies to raise prices of petrol by 5 rupees per
L, diesel
by 3 rupees per L and cooking gas by 50 rupees per cylinder.
The finance minister said the hike in auto fuels and cooking gas
was
unavoidable, as the revenue losses of state-owned oil marketing
companies were
mounting.
The revenue losses of oil marketing companies are likely to touch
400 bln
rupees in 2008-09 even after the price hike and duty cuts. End
.
K.Karthik Raja
Jun 20, 2008, 5:43:50 AM6/20/08
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