No need for panic due to rising inflation: Dhoot

New Delhi, Feb 9 (UNI) Reacting on the headline inflation rate climbing up to over 6.5 per cent, Assocham President Venugopal N Dhoot today said there should not be any panic as this will come down at around 5 per cent for fiscal 2006-07.

The Government in the recent past has taken sufficient measures such as reducing customs on variety of metals as also increased supplies of essential commodities to narrow down the demand supply mismatch, Mr Dhoot said.

''The impact of these (steps) will be felt in the next few weeks. Therefore, there should not be any panic on account of increasing inflation.'' The chamber expects RBI to take certain monetary measures, which will flush liquidity in the system that will also amount to taming the current rate of inflation that now looks alarming.

UNI