Inflation disturbing, CCP to meet: Fin Secy

Written by Agencies | New Delhi, March 29: | Updated: Mar 29 2008, 21:23pm hrs
Concerned over spiraling inflation the Cabinet Committee on Prices will meet on Monday to take stock of rising prices.

"The Cabinet Committee on Prices will meet on Monday," Finance Secretary D Subbarao told reporters on the sidelines of a seminar on proposed amendments to 'Securities Contracts (Regulations) Rules' here today.

He was responding to a query whether any fiscal step to control rising prices will be forthcoming today.

Earlier addressing the seminar, Subbarao said yesterday's inflation numbers were quite disturbing and he attributed the reason behind them partly to high global commodity prices.

Inflation rate for the week ended March 15 rose to 6.68 per cent, while the Reserve Bank aims to limit it to an average five per cent for the current fiscal.

Commodity prices are rising globally despite fears of recession in the US, he said at the seminar organised by the Institute of Company Secretaries of India.

"Generally, we expect commodity prices will go down when there is recession in the developed countries. If you look at past recession in the US, there is depression in commodity prices. But, this time there is elevation in commodity prices together with recession in the US," he said.

Meanwhile, another high-level meeting will be held on Wednesday to consider measures for maintaining adequate supply line in the face of global pressure on prices, according to Commerce Secretary G K Pillai.

He had said yesterday that the empowered Group of Ministers on prices, headed by External Affairs Minister Pranab Mukherjee, would meet on April 2 to review prices of rice, wheat and procurement of edible oil.