Re slumps as inflation hits 4-year high

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Inflation seen at 12.13 pct on Sept 20Inflation unchanged at 12.14 pcInflation in double digit till Jan: SenInflation coming under control: PM's aide

to be taken by the government, but we hope the central bank does not or else there would be a liquidity mess. Only if the monsoons are good, can we get some relief,” Pan added.

Meanwhile, in New Delhi, Left parties asked the government to take urgent measures, including banning futures trading in essential items and action against hoarding, to check the rising price graph. CPI(M) politburo member Sitaram Yechury said “a wrong diagnosis” of the price problem was leading to the slowing of the economy.

More steps possible: FM

Finance minister P Chidambaram on Friday warned steel and cement manufacturers of more administrative steps if the rate cuts announced by them were not enough to check the price rise. Chidambaram said the rise in inflation is “indeed worrying”, but the decline in the inflation rate of primary articles is a silver lining amidst dark clouds.

“The rollback of steel and cement prices is not reflected in the data. We are waiting for steel and cement (price) reductions to come into force, but we always reserve the right to take administrative measures if they are not enough. But we hope that what has happened to the primary article group will also be reflected in the manufacturing items category,” he said.