Inflation up at 6.46 pc
March 3, Vegetables and cement became costlier. Vegetable prices increased by 7 percent. For cement, the price surge was by 4.4 percent.
Inflation rose to 6.46 percent, as against 6.10 a week ago during the week ended and appears to be inching towards the two year high of 6.73 percent.
Finance Minister P.Chidambaram has assured that he would contain inflation. The inflationary scenario can be gauged by the fact that for the corresponding period a year ago, inflation stood at 3.86 percent.
Talking in the Lok Sabha, finance minister said let him assure the honourable members that government had taken, and would take, fiscal monetary and supply side measures to moderate inflation. Finance minister recognise the burden on the people, but this burden would ease over the next weeks and months.
Finance minister said that he had urged the states to impose stock the states to impose stock limits on wheat and pulses, and start de-hoarding operations. He said five states have already imposed stock limits on wheat and pulses and have taken action against those who held stocks in excess of the prescribed limits.
Finance minister said that the average inflation for 2006-07 was expected to be about 5.4 percent. He said that it might be pointed out that RBI had given 5 to 5.5 as the tolerance level for inflation.
The latest government data on inflation for the week under consideration shows that the prices of fish-marine, maize, oil cakes, flour, fuel items, copra, bran oil and insulted cables moved up. The prices of fruits, tea, pultry chicken and urad dal moderated.
