Govt ready to take more steps, blames global crude prices for inflation

  • 31/05/2008

  • Times Of India (New Delhi)

While the inflationary pressure has gone out of control from the government, commodity prices have been steadily increasing. During the week, price of fish jumped by 6%, fruits and vegetables by 3% and moong dal and spices by 2% and 1% respectively. Despite export bans, skimmed milk was costlier by 7% and imported edible oil by 1%. Furnace oil was costlier by 3% and light diesel oil by 2%. While FM promised that the government would do more to check inflation, he pointed out that global crude oil prices ruling at $126 a barrel put a huge pressure on the economy. Unless these prices declined, there would be no relief and "headline inflation' would not be affected. In the given situation, the minister appealed to industry to hold the price line. While oil prices might be out of his control, the minister's expectation that food prices will moderate may not come to pass so easily. With high procurement prices