New DeIhi, Jun 21: Reserve Bank of India (RBI) Governor Y V Reddy met Prime Minister Manmohan Singh; a day after the inflation rate was recorded at a 13- year high of 11.05 per cent.
Controlling inflation was on the agenda of the meeting, which lasted for about 15-20 minutes at the Prime Minister's residence at 7 Race Course Road. The details of the meeting were not available. Reddy also met Finance Minister P Chidambaram today. The Central Government on Friday, Jine 20, indicated stronger measures on demand and monetary sides to control inflation. Oil price hike and rising prices of food items have contributed to inflation. For the 17th consecutive week, inflation rate has been above 5.5 per cent. Analysts say, the Reserve Bank of India (RBI) would come out with some measures on the rate and liquidity side much before the July policy for curbing high inflation figure.
This is the highest level of inflation during the United Progressive Alliance (UPA) regime. The annual inflation rate for the week ended August 28, 2004, was 8.74 per cent. On Wednesday, June 4, the Central Government upped the price of petrol by Rs 5 a litre and that of diesel by Rs 3 a litre. The price of a Liquefied Petroleum Gas (LPG) cylinder was increased by Rs 50. Price of kerosene was left untouched.