New Delhi, June 6
Inflation climbed to 8.24 per cent, a new high in 45 months, although essential food items like fruits and vegetables and spices turned cheaper, making the government think of more steps to ease prices.
The numbers for the week ending May 24 was 0.14 per cent higher than the 8.1 per cent recorded in the previous week. The rate stood at 5.15 per cent a year ago.
Finance minister P. Chidambaram admitted that inflation had become a problem, but said with people's support the rate of price rise could be beaten back.
But that may take awhile, as inflation is expected to balloon further after two weeks when the data would fully reflect the June 5 hike in retail fuel prices.
Chidambaram dismissed the main opposition BJP’s criticism of the government on the price front, saying “to criticise..without going into causes of current inflationary trends and without offering concrete steps would amount to merely politicising the issue.” The BJP's national executive had passed a resolution on prices criticising the government and separately called the hike in petrol,
diesel and cooking gas prices as unleashing of “economic terror” on the people by
the UPA.
During the week, prices of fruits, vegetables, spices, salt, raw silk and cement, declined, but cereals, eggs, meat, fish, imported edible oil, paper and paper products, chemical, machinery and automobile parts turned expensive.
“The government, like governments all over the world, is fighting inflation. We have taken fiscal, monetary and administrative measures and we are willing to take more measures,” Chidambaram said.
The RBI too has said it would take all measures to curb inflationary expectations.
— PTI
