New Delhi, March 29
Spiraling inflation has set the government into action. Finance secretary Dr D Subbarao has said Cabinet Committee on Prices (CCP) will meet to take view on the same on Monday.
The finance secretary stated this when he was responding to a query on inflation as to whether any fiscal steps to control rising prices would be forthcoming today.
Earlier addressing the seminar, Subbarao said yesterday’s inflation numbers were disturbing and attributed the reason behind them partly to high global commodity prices.
Inflation rate for the week ended March 15, 2008, rose to 6.68 per cent, while the RBI aims to limit it to an average 5 per cent for the current fiscal.
Fear of recession in the US has led to the commodity prices rising globally and that is being reflected in India said the finance secretary at a seminar organised by the Institute of Company Secretaries of India.
“Generally, we expect commodity prices will go down when there is recession in the developed countries. If you look at past recession in the US, there is depression in commodity prices. But, this time there is elevation in together with recession in the US,” he said.
Meanwhile, another high-level meeting will be held on Wednesday to consider measures for maintaining adequate supply line in the face of global pressure on prices, according to commerce secretary G.K Pillai.
Pillai had said yesterday that the empowered group of ministers on prices, headed by external affairs minister Pranab Mukherjee, would meet on April 2 to review prices of rice, wheat and procurement of edible oil.
