Inflation at tolerable limit, steps to contain it: PC

New Delhi, Mar 20 (UNI) Finance Minister P Chidambaram today asserted that the current rate of inflation at around 4 per cent was a tolerable limit for a developing country, and said the government would continue to take steps to contain it.

''We will try to contain it. We will continue to contain it,'' he said, replying to the debate on the Finance Bill 2006-07. ''The RBI and the government will work to contain price rise.'' He said the current wholesale price index was 4.02 per cent, while the consumer price index which was at 4.37 per cent in January 2005 continued to be the same in January 2006.

''This is a tolerable limit for a developing country as there cannot be zero inflation.'' He said price of only some commodities such as potatoes and wheat have risen over the past 20 months.

''Inflation is not raging.'' UNI YJ MSJ GC1637