Inflation not alarming, says FM

Sivaganga, Tamil Nadu, Mar 17 (UNI) The current inflation rate was not alarming and the Centre was taking necessary steps to contain it, Union Finance Minister P Chidambaram said today.

Addressing newspersons here after inaugurating Indian Bank's 1000th Core Banking Solution (CBS) branch and a bio-metric ATM at Kalayarkoil, he maintained a marginal increase or decrease in the inflation rate was neither a problem nor cause for concern.

Mr Chidambaram said the current inflation rate was above six per cent and the government, in tandem with the RBI, was taking monetary measures to stabilise the situation.

Reeling out statistics, the Minister pointed out to periods when inflation remained at more than six per cent for 48 weeks, more than seven per cent for 22 weeks and further more than eight per cent for 100 weeks. It could be controlled in the present scenario as well, he added.

On the soaring prices of cement, he said manufacturers had been asked to desist from hiking the rate. ''Responsible manufacturers will respond to this issue,'' he observed.

Many states, including Tamil Nadu, were yet to respond to the Centre's request to provide details of stocks, necessary for keeping hoarding under check, he said and added that only five states had sent their response.

On pulses, the Minister said there was a gap between demand and domestic production. While demand was 160 million tonnes, production remained at 140 million tonnes.

Even the import of these commodities was difficult since only two countries - - Myanmar and Turkey-- were engaged in producing the varieties used at home. As such, the country had to attain self-sufficiency in pulses production.

UNI