New Dehli: Inflation further sinks to 5.44pc

New Delhi, May 18: The headline inflation further dipped to 5.44 per cent for the week ended May 5, as compared to 5.66 per cent the previous week.

The annual rate of inflation, calculated on a point-to-point basis, stood at 4.37 per cent during the corresponding week of the previous year, according to official figures issued here today.

The government has indicated that more steps such as a reduction in customs duties could be taken to check rising prices and bring down inflation below the 5 per cent level.

''I am not happy with inflation... We are willing to take further fiscal steps to contain inflation, if members so suggest,'' Finance Minister P Chidambaram said yesterday.

He said the government was aiming to bring down inflation below 5 per cent and later down to somewhere between 4-4.5 per cent, which has been indicated as the tolerance level by the Reserve Bank of India (RBI).

Mr Chidambaram said the government was taking steps to augment supplies of food items, and attributed the increase in prices to higher demand, capital flows, commodity prices and public spending.

UNI