Hyderabad, Oct 23 (UNI) Rising crude oil prices tend to affect every section of the society and more so, the lower and middle class, Andhra Pradesh Finance Minister K Rosaiah said here today.
Speaking after releasing a booklet here on ''Oil Prices, Inflation - Effect on Indian Economy'', brought out by the Federation of Andhra Pradesh Chambers of Commerce and Industry and the Hindu Business Line, he said the soaring oil prices had increased the energy cost component, which included the prices of not only fuel related items, but also other general commodities.
The extent, to which rising oil prices will be translated into higher inflation through higher costs, depended on its persistence, he opined.
Higher inflation had adversely affected the efforts of the Andhra Pradesh Government not only in accelerating agricultural growth but also growth in industrial and service sector, the Minister said.
The opinions, expressed by the noted economists and experts in the booklet, will be useful to the policymakers. It will also help in finding a lasting and alternative solution to the burning problem of economic fire fighting, he added.
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