Finance minister P Chidambaram said inflation was likely to moderate further. He, however, admitted prices of some food itemsmainly wheat and pulseswere still exerting pressure on inflation indices, especially the consumer price index. I intend to keep inflation at 4% or less, he said.
Chidambaram met RBI governor Y V Reddy later in the day and exchanged views on moderating inflation.
During the week under review, world oil prices dropped to their lowest levels in six months to about $63 a barrel. Prices dipped for vegetables, fruits, urad, jowar, maize, mutton, condiments and spices, naphtha, furnace oil, epoxy resins, steel sheets.
Price of pulses rose, however, by 0.6% during the week under review.