FM satisfied over fall in inflation

New Delhi, Sept 7 (UNI) Finance Minister P Chidambaram today described soaring global crude oil prices as worrisome, but expressed satisfaction over the fall in inflation to a 16-month low of 3.79 per cent.

The Finance Minister opined that prices of essential food items should decline further.

"It is a reason for happiness," Mr Chidambaram said reacting to inflation data released earlier in the day.

"This shows good macro management. I have been saying whatever steps have been taken from time to time have yielded good dividends," he said.

Regarding the future trend of inflation, Mr Chidambaram said there was need for caution relating to global crude oil prices, which have touched 74 dollars per barrel.

The Finance Minister was of the view that prices of essential commodities could be kept low by augmenting supplies.

"That can only happen if the demand-supply mismatch is addressed.

We have to address the supply side issues of pulses, food, oilseed, and vegetables," he said.

Mr Chidambaram noted that the commonman concerns related to essential commodities.

Inflation has remained below four per cent for the second week running.

UNI