Inflation at tolerable limit, steps to contain it: FM

New Delhi, Mar 20: Finance Minister P Chidambaram today ( Mar 20, 2006) asserted that the current rate of inflation at 4.37 per cent was a tolerable limit for a developing country, and said the government would take further steps to contain it.

''We will try to contain it. We will 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 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.

UNI