Attributing the surge in inflation to rise in administered prices of petroleum products, Finance Minister P Chidambaram on Friday hinted at more steps to curb demand and improve supply side to control the price rise.
"These are difficult times. The government is aware of difficulties. . . Naturally, we will have to look at stronger measures on demand and monetary sides. . . We will try to address to best of our abilities the demand and monetary sides and try to improve supply side also," Chidambaram said.
He, however, refused to divulge what steps the Government or RBI intended to take. The Finance Minister was talking to reporters after official data showed inflation has touched the 13-year high of 11.05 per cent for the week ended June 7.
Chidambaram said when the administered prices of petrol, diesel and LPG were increased we had cautioned the Cabinet that inflation would touch double-digit and that is what has happened.
Petrol, diesel and LPG contributed to 94 per cent of increase in inflation for the week ended June 7, he said, and added this was expected.
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