Bold measures by government will cool down inflation: Montek

New Delhi, April 2 : Deputy Chairman of Planning Commission Montek Singh Ahluwalia said on Wednesday that the Government has taken bold measures to contain prices and they will definitely cool down inflation.

"So far as measures are concerned they are bold measures. They are not little bits of things and I think they will have an impact (on inflation)", Ahluwalia said on the sidelines of a conference to release the report of the High-Level Group on Services Sector.

Reportedly, the Government has taken a number of initiatives, like scrapping of duty on various edible oils and banning export of non-basmati rice and pulses to contain inflation, which increased to 6.68 per cent for the week ended March 15, much above the Reserve Bank's target of 5 per cent.

Ahluwalia said the steps taken by the government were the right measures to take, and the prices of edible oils have started coming down. "I am very certain that we will be able to bring it under control", he added.

He also pointed out that the whole world is facing the problem of inflation and this is not just an India centric problem.

"Every country in the world is facing an upsurge in the inflation. Chinese inflation is about 9 per cent much worse than ours. We should recognise that this is an global phenomenon not an easy one," Ahluwalia said.

He further added that inflation was a matter of continuous monitoring and the Finance Ministry is looking at it very closely, "We should not be looking for day-to-day responses."

ANI