New Delhi, June 27
The headline inflation rate for the week ended June 14 continued to soar and reached 11.42 per cent as compared to 11.05 per cent for the previous week. The government and RBI have already taken measures to control inflation, the finance minister P. Chidambram said, adding that if necessary we will not hesitate to take more fiscal and monetary measures.
What pushed inflation higher are prices of food articles, including milk, cereals, tea, edible oils and items like soaps and detergents. Echoing the sentiment of the finance minister, the economic advisor Shubhasis Gangopadhyay said that double-digit inflation will linger on for some more time even if prices stabilise, and the government should not be expected to take action just because inflation is growing by two
digits.
While the finance minister is travelling to Mumbai, the economic advisor said do not expect actions to be taken by the government because double-digit inflation will remain for the next few weeks.
In the meantime, the main opposition party the BJP today launched a scathing attack on the Centre and said that the UPA government does not have any solution to curb price rise. “The UPA has run out of ideas”, party spokesman Ravi Shankar Prasad said, adding, “it is a tottering government headed by a sulking Prime Minister”.
The BJP spokesperson alleged that the UPA calls the RBI governor to hike inflation rate and makes a mandate to 10 Janpath. What is more shocking is the cruel indifference of the government. The people have seen through the Congress-led coalition and called it a negative, indifferent government that has failed on all fronts.
