FM expects inflation to moderate

Font Size -

Reuters

Posted online: Friday , May 16, 2008 at 03:36:23

New Delhi, May 16: India's annual inflation rate, which neared 8 percent in early May, is expected to moderate once the impact of lower steel and cement prices is felt, Finance Minister Palaniappan Chidambaram said on Friday.

The wholesale price inflation rate, India's most widely watched measure, rose 7.83 percent in the 12 months to May 3, its highest since Nov. 2004 and above a median forecast of 7.50 percent in a Reuters poll.

"Our expectation is that inflation will moderate. We are waiting for steel and cement price cuts to come into force. You have to be patient," the finance minister told reporters.

"We reserve the right to take more administrative measures," he said without elaborating.

Chidambaram also said unless global crude oil prices decline, India would continue to witness "pretty high inflation" in the fuel group.

Post Comments

Name*		Email ID*
Subject*		Country*
Message*	Characters remaining

TERMS OF USE: The views represented here are not neccesarily endorsed by www.expressindia.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.

I agree to the terms of use.

Comments - 1

TOO LATE by SHENNOY on 16 May 2008

By the time inflation moderates,in spite of BLUDERS by MR.Chidambaram,all poor and aam admi would have died of hunger and starvation.JAI BHARAT.JAI SONIA.JAI PRAKASH KARAT

Reply | Forward | Report Abuse