A day ahead of the release of official data, Finance Minister P Chidambaram on June 26 said double digit inflation would be there for some more weeks and the Government as well as RBI would not hesitate to take more steps to rein in soaring prices, if need arises. Pointing out that the Government and RBI have already taken measures to control inflation, he said, "If necessary we will not hesitate to take more fiscal and monetary measures." However, Chidambaram admitted that the UPA may be defensive on high inflation in elections. To a question whether the UPA starts as a loser in elections because of high inflation, Chidambaram said, "Well that is a premature conclusion. We will be on defensive on inflation, but as I have said all politics is about communication. We must communicate to the people why prices are high and the efforts we are taking to moderate it.
"When asked whether the Government would go for another round of hike in prices of petroleum products, the Finance Minister said it is not feasible at this point of time when inflation rate is at double digit. "I don''t think given the double digit inflation, such a thought (of raising petroleum prices) is possible at all. I think given double digit inflation, given my earlier caution, that price increase will result in double digit inflation I don''t think there is appetite now for a further increase in prices," he said.
"When asked whether the Government would go for another round of hike in prices of petroleum products, the Finance Minister said it is not feasible at this point of time when inflation rate is at double digit. "I don''t think given the double digit inflation, such a thought (of raising petroleum prices) is possible at all. I think given double digit inflation, given my earlier caution, that price increase will result in double digit inflation I don''t think there is appetite now for a further increase in prices," he said.
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