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New Delhi Feb. 15 The Finance Minister, Mr P. Chidambaram, said on Thursday that the cut in prices of petrol and diesel should help moderate inflation in the economy.

"Any cut in inputs like petrol and diesel should have a moderating influence on inflation. The index shows that the fuel, power segment of the wholesale price index (WPI) has declined and in last two weeks remained constant. I think this should help moderate inflation," he told reporters here.

Asked whether the Government proposed to effect duty cuts on petrol and diesel, Mr Chidambaram said he couldn't comment on this matter.

He however pointed out that the UPA Government had moderated inflation in the past. "When this government assumed office, inflation had already crossed 6 per cent and it went slightly beyond 8 per cent. We then moderated inflation. We will moderate inflation this time too," Mr Chidambaram said.

The Finance Minister said the Government has taken a number of steps to tame inflation. "One has to be patient. We recognise that there is burden on common citizen," he said.

Mr Chidambaram said Thursday's decision to cut prices of petrol and diesel was taken after considering all facts and circumstances. "Ordinarily, a cut in fuel prices should moderate inflation. I hope that this cut will moderate inflation," he said.

The Finance Minister also admitted that there were supply constraints in articles of daily consumption like pulses, milk, fruits and vegetables. "This is more than seasonal, which is causing this present disturbance in price situations," he said.

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