The Hindu Business Line : We will take steps to rein in inflation: Chidambaram

A DAY ahead of the mid-term review of the Credit Policy, the Finance Minister, Mr P. Chidambaram, has said that the Government and Reserve Bank of India would take steps to keep inflation within moderate levels. He said that in the near term inflation is expected to hover around the 5 per cent region.

``We will continue to watch the price line. If necessary, we will take monetary and fiscal steps. Let's see what the RBI does tomorrow ," Mr Chidambaram said at a function organised by the UNDP and Rajiv Gandhi Foundation here.

Mr Chidambaram said that despite the oil price rise, the Government and RBI expect inflation to be around 5 per cent.

"There is bound to be some impact of fuel price hike on inflation. So price rise was inevitable. I think the fuel pass through impact is over," the Finance Minister said.

For the week ended October 8, inflation inched up to 4.62 per from 4.24 per cent the week before.

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