More administrative steps to check price rise: FM

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Friday , May 09, 2008 at 1325 hrs Finance Minister P Chidambaram on Friday promised to take more administrative steps to check price rise even as inflation inched up to 7.61 per cent for the week ended April 26 from 7.57 per cent in the previous week.

"More administrative steps will be taken as and when they become necessary to check inflation, Chidambaram said while pointing out that government was trying to persuade cement manufacturers to cut prices.

Referring to inflation inching up to 7.61 per cent from 7.57 per cent, Chidambaram said the movement "in our assessment means that it is stable and not statistically significant".

The government, he said, has already taken various administrative steps to check inflation like banning futures trade in four commodities and persuading steel producers to voluntarily cut prices.

The government on Monday extended ban on futures trading to four more agriculture commodities-- chana (gram), soyoil, potato and rubber.

The Minister said, "We are in the process of persuading cement companies to roll back prices. If that succeeds, that will also be an administrative step".

"We are as concerned as everyone else. That's why we are taking steps. Every week there is a roll out of some steps or the other. If necessary more steps will be taken," he said.

On the impact of the initiatives taken by government and the Reserve Bank on prices, Chidambaram said, "When the steps come together and take effect, there will be moderation.