Anti-inflationary strategy being co-ordinated; FM

New Delhi, Jan 19 (UNI) Finance Minister P Chidambaram today expressed concern at the inflation rate crossing six per cent and said an anti-inflationary strategy was being co-ordinated between the Ministeries of Finance, Agriculture and the Reserve Bank of India.

"The spurt in the Wholesale Price Index year on year inflation from 5.58 to 6.12 is indeed a cause for concern. The Economic Division, Ministry of Finance, has analysed the reasons and it appears that the rise is largely attributable to what is called'base effect'," Mr Chidambaram said in a statement here.

The Finance Minister said the index for all commodities moved only from 208.1 to 208.2 in the week relating to December 30, 2006 to January 6, 2007. However, for the corresponding period of the previous year, the index declined by 0.9. Hence, the base effect has triggered a rise in the WPI rate, he said.

However, Mr Chidambaram said, the index number for all 'primary articles' as well as fuel, power and lubricants have also moved up slightly. The index number for all manufactured products has declined slightly.

The Finance Minister said beginning September 2006, the index numbers for each of the three groups has remained range bound, with a considerable decline in 'fuel, power and light and lubricants' and small rise in manufactured products.

Mr Chidambaram noted that among food items, the ones that were causing some concern are urad, tea, tomatoes, coconut, and arhar.

Among manufactured products, there is a rise in small steel products and some edible oils.

UNI