Date:26/08/2006 URL: http://www.thehindu.com/2006/08/26/stories/2006082607391500.htm

Business

Inflation to be kept below 5 p.c.

Special Correspondent

Tolerance for inflation has come down: FM

NEW DELHI: With the rate of inflation inching towards five per cent, Finance Minister P. Chidambaram on Friday said the Government was striving to keep prices under check by containing the inflation level below that mark during the current fiscal. "Our tolerance for inflation has come down. We have to have inflation at tolerable levels,'' Mr. Chidambaram told newspersons here while noting that the import of wheat and pulses had been permitted, mainly to keep the prices of essential commodities under check.

With the rate of inflation rising to 4.92 per cent during the week ended August 12 from 4.82 per cent in the previous week, Mr. Chidambaram said that ample liquidity was being provided to soften the effect of hardening global interest rates. "Hardening of global interest is not in our control. What we are doing is to ensure ample liquidity so that the impact of hardening interest rates is softened,'' he said.