Terming runaway inflation, which has touched seven-year high of 8.75 per cent, as a 'worrying' factor, Finance Minister P Chidambaram said on Friday the government was confident of bringing down the price rise.

Attributing the soaring inflation to the spiralling crude oil prices, he hoped that the conference called by the Saudi King to discuss the problem of zooming oil prices would bear fruits and rein in the petroleum prices.

Chidambaram's comments came even as inflation for the week ended May 31 rose to 8.75 per cent, up from 8.24 per cent in the preceding week. The costlier food and vegetables mainly accounted for 0.51 per cent increase in from the preceding week.

Inflation at 8.75 per cent is the highest in the United Progressive Allowance government's tenure so far.

On increasing minimum support price for paddy by Rs 105 per quintal to Rs 850, he said, 'it was a record increase by any government for the welfare of the farmers.'

"The objective of the hike is to provide better price for farmers and make them produce more. It would not sound logical that the price of paddy should be increased but price of rice should not be increased, the price of sugarcane should be increased but the price of sugar should not be hiked," the minister said.

Compared to rise in support price for the paddy given by the UPA government in one stroke, the previous government had given only Rs 60 in five years. Besides, in the last four years the support price for paddy had been increased by Rs 195, Chidambaram said.

Chidambaram was speaking at the inauguration of the Corporation Bank's [Get Quote] 999th branch and 972nd ATM at Tamil Nadu's Sivaganga.

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