FM promises more admin steps to reign in inflation

Finance Minister P Chidambaram today promised to take more administrative steps to check price rise even as inflation inched up to 7.61 percent for the week ended April 26 from 7.57 percent in the previous week.

New Delhi: Finance Minister P Chidambaram today promised to take more administrative steps to check price rise even as inflation inched up to 7.61 percent for the week ended April 26 from 7.57 percent in the previous week.

"More administrative steps will be taken as and when they become necessary to check inflation,” Chidambaram said while pointing out that government was trying to persuade cement manufacturers to cut prices. Referring to inflation inching up to 7.61 per cent from 7.57 percent, Chidambaram said the movement "in our assessment means that it is stable and not statistically significant".

The government, he said, has already taken various administrative steps to check inflation like banning futures trade in four commodities and persuading steel producers to voluntarily cut prices. The government on Monday extended ban on futures trading to four more agriculture commodities including-- chana (gram), potato and rubber.

The Minister said, "We are in the process of persuading cement companies to roll back prices. If that succeeds, that will also be an administrative step".

"We are as concerned as everyone else. That's why we are taking steps. Every week there is a roll out of some steps or the other. If necessary more steps will be taken," he said.

On the impact of the initiatives taken by government and the Reserve Bank on prices, Chidambaram said, "When the steps come together and take effect, there will be moderation. That's what the Prime Minister suggested in Bangalore. One must have faith that these steps will yield results." (PTI)

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