Government sensitive to inflation: PM

On Board Air India One, Jan 15 (UNI) Prime Minister Manmohan Singh today acknowledged that the rate of inflation had edged up but felt there was nothing alarming about it.

''We will remain sensitive to inflation because it inflicts hardships on the poorer sections and our government is very mindful that we must gain mastery over inflation,'' he told journalists on his way back from the 5th India-ASEAN Summit and the 2nd East Asia Summit in Cebu, the Philippines.

He also noted that the Reserve Bank of India had taken some monetary measures to curb inflation. ''And my own feeling is that, with the coming of more grains, the prices of wheat will stabilise and the prices of other commodities, which are leading to a rise in the wholesale price index, will be brought under effective control,'' he said.

Asked if the government would reduce petrol and diesel prices further, Dr Singh said it would depend on international crude prices.

''When international prices come down, there will be scope for reducing. I am not an astrologer. I cannot predict what will be the shape of international prices of petroleum products. We have reduced prices of petrol and diesel only a few weeks back,'' he said.

Overall, Dr Singh felt there were positive developments in the economy. ''The process of globalisation has brought gains. Our industry and trade are moving forward at unprecedented rate. Our economic growth has picked up but it is also true tha benefits of growth are not percolating down to all sections of our population,'' he said.

The Prime Minister, however, said he was worried about the fact that growth in the agriculture sector was not what it should be.

''In the years and months to come, we will focus more on the needs of our rural areas. There are flagship programmes highlighted in the common minimum programme. We have a lot of unfinished business to ensure that the fruits of our development reach all sections and regions of our country,'' he added.

UNI