Double-digit inflation to stay for some more weeks: FM

NEW DELHI: Double-digit inflation is likely to continue for a few more
weeks before government efforts kick in to ease the rate of price
rise, Finance Minister P Chidambaram has said.

Ahead of new inflation data to be released tomorrow, he told a
television channel that he cannot guess the inflation figure, but
"will remain in double digit for some more weeks."

"I don't know. I can't guess the figure," Chidambaram told the channel
in an interview.

He, however, disagreed with a suggestion that inflation could spoil
the United Progressive Alliance's chances in the upcoming general
elections.

"Well, that's a premature conclusion. We will be defensive on
inflation. All politics is about communication; we must communicate to
the people why prices are high and efforts we are taking to moderate
it," he said.

Inflation touched a 13-year high of 11.05 per cent as on June 7, after
a partial pass through of increase in global crude prices.

Government and RBI have taken several fiscal and monetary steps to
cool inflation, but these measures may also have a slowdown effect on
economic expansion.

Asked whether the government feels achieving nine per cent growth this
fiscal would be difficult, the Finance Minister said: "There will be
some moderation in growth rate, but growth will not fall
precipitously.

"(Given) the structure of our economy, which is about 57 per cent
services, growth will still be above eight per cent, but the point is
we want nine per cent growing up to 10 per cent. This year we can't
hope for that," Chidambaram said.

Source: Economic Times