FM hints at stronger fiscal, monetary and supply measures

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New Delhi, Jun 20 (UNI) With the headline inflation touching a 13-year-high of 11.05 per cent, a worried Finance Minister P Chidambaram made it clear that stronger monetary and fiscal steps, as well measures to augment supplies are in the offing.

''When the Cabinet met to decide on hike in fuel prices, we had warned the Cabinet that this could lead to double digit inflation. This is what has happened,'' Mr Chidambaram told reporters outside his North Block office.

Mr Chidambaram said he was not in the position to spell out the details of these steps at the moment.

Mr Chidambaram said of the 1.77 per cent increase in inflation rate, 1.67 per cent increase was the result of increase in petrol, diesel and LPG prices.

''This means that 94 per cent of the increase is directly attributable to the hike in fuel and petroleum products.'' Mr Chidambaram said.

The Finance Minister said these were difficult times and enjoined upon the people to bear with the government, understanding the difficulties it was facing on account on global crude prices touching the roof.

Mr Chidambaram said he has just met Petroleum Secretary M S Srinivasan, Finance Secretary D Subba Rao and other concerned Secretaries to analyse the situation.

Meanwhile, Mr Srinivasan told reporters that there was no question of roll back of prices of petrol.


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