Steps will be taken to moderate the inflation: Chidambaram

Mumbai, Feb 10 (UNI) The rise in the country's inflation rate, which rose to a two-year high of 6.58 per cent during the week ended January 27, has been owing to supply constraints, strengthening economy and robust consumer demand, but the government would use all measures possible to moderate the price rise, Union Finance Minister P Chidambaram, said here today.

Talking to mediapersons here today, Mr Chidambaram said, ''While the GDP was rising at more than 9 per cent, year-on-year credit offtake was little over 30 per cent and money supply was close to 21 per cent.'' Though maintaining that the supply side must be eased, he expressed satisfaction over the coming down of the sugar price and hoped that same trend will follow in the case of wheat too by the month-end.

The Finance Minister was here to attend the second ANMI (Association of NSE Members of India) International Convention on ''Role of capital market in the resurgent Indian economy''.

Mr Chidambaram said, ''This is an unusual growth and demand combination.'' Still, he assured that the government was poised to take all possible steps to moderate the inflation. ''We have done it before and we are confident of doing it again,'' he added. Replying on the RBI's reported move to prevent dollar from riding below Rs 44 mark, the Finance Minister quipped, ''I don't talk on speculative reports''. In reply to another query, he said, ''You can't take short-term appraoach on the supply side.'' UNI