New Delhi, September 3
The government has decided to discuss measures to tackle inflation and this will be the agenda for the Cabinet meeting to be held on Thursday.
There have been studies by major domestic and international firms warning the government that inflation may reach up to 15-17 per cent.
The CCP to be chaired by Prime Minister Manmohan Singh may also review difference in the minimum support price of different commodities and the market rates, sources said.
The government and the Reserve Bank have taken various steps to cool off inflation. These include hardening of interest rates, removing or slashing import duties and putting export restrictions on a number of essential items.
The committee on secretaries met today to take stock of the situation following a decline in prices of crude oil and building of comfortable reserves of foodgrain. But it was felt that a continuous vigil would have to be kept on prices.
While inflation, measured on the Whole Sale Price Index, eased slightly to 12.4 per cent for the week ended August 16 from 12.63 in the previous week, it remains an area of grave concern for the government in an election year.
To its relief, however, the crude oil prices have dropped sharply to $109 per barrel off the record high of $147.27 on July 11.
