Blaming the surge in inflation rate on continuing rise in global commodity and foodgrain prices, Finance Minister P Chidambaram, on Monday, said the Centre will make every effort to contain price rise and ensure that it did not affect the poor.

“We will make every effort to contain prices, especially for the weaker section,” he said while winding up discussions on Budget in Rajya Sabha.

Stating that fair prices to farmers would mean higher prices for consumers, he said the interests of the poor will be protected though it may result in higher subsidy outgo.

Pointing out that the government has already cut excise and customs duties in the Budget to contain prices, he said, “we will take fiscal steps...we will urge RBI to take monetary steps. Its (RBI) dharma is price stability.”
He further added that the government would try to maintain growth momentum while initiating measures to keep prices under control. “I am confident that RBI will keep growth in mind, while taking monetary steps,” he said.

Growth is imperative

Admitting the inflation is again on the rise, Mr Chidambaram said it was on account of relentless increase in the crude oil, commodity and foodgrain prices in the global market. As per latest figure, the wholesale price-based inflation rate touched 5.11 per cent for the week ended March 1.

Mr Chidambaram said, “We have to be extremely vigilant about inflation and ensure that it remains within the tolerable limit.” Further, Mr Chidambaram observed that the government would make all efforts for an economic growth rate of well above 8 per cent and close to 9 per cent in 2008-09.

“We have delivered high growth... we will make every effort to maintain growth rate at well over 8 per cent and close to 9 per cent (in 2008-09),” he said. The Indian economy has moved on to a higher growth plane, he said.

“Growth is imperative. Growth is important. If there is growth there is chance of inclulsive growth. Without growth there is no chance of inclusive growth,"  the finance minister further observed.