Chidambaram seeks apt mechanism for stable prices to check inflation

New Delhi, Jan 6 (ANI): Expressing concern over the high price of various commodities, Union Home Minister P. Chidambaram has said the government, does not have a magic wand to control these trends, but is determined to check it on the food front.

Addressing a conference 'FI Inclusion Day' hosted by trade and industry representatives here, Chidambaram said: "It is a duty of the government to maintain price stability alongside correcting administrative prices of various commodities and allied materials.

He also observed that grumbling on the structure of taxation is futile since no tax is worse than inflation.

He was of the view the taxpayers ought to keep up their obligations and lend a helping hand to the government in tackling the inflation.

"No tax is worse than inflation. All that you gain in streets is gain in roundabouts. The people have higher incomes but it is eroded by inflation, specially in a country where still many prices and administered prices. It is a duty to maintain price ability. Today inflation is high, food inflation is very high, yet some administrative prices have to be corrected," he said.

He further posed a challenge to ascertain if any individual or a body had some formula to control inflation instantly.

"I am not sure whether we understand all the factors that contribute to price rise, nor am I sure whether we have all the tools to control inflation. Some say we do, some say we don't. At least in the case of food inflation, I have not heard anyone argue convincingly that we have all the tools to control food inflation," he said. (ANI)