The Hindu Business Line : `Inflation will continue to moderate'

The Finance Minister, Mr P Chidambaram, has expressed confidence that the wholesale price index (WPI)-based inflation would continue to moderate in the next few weeks even as he admitted that there was still pressure on food prices.

Data released showed that inflation for the week ended September 16 slipped to 4.56 per cent from 4.61 per cent in the week ago.

"Impact of supply-demand mismatch in wheat and pulse continues to impact inflation indices especially the consumer price index.

But for the impact of food prices, inflation would be even more moderate. It is my intention to keep wholesale price index-based inflation to 4 per cent or less", Mr Chidambaram said.

He expressed confidence that steps taken by the Government to augment supplies and reduce gap between supply and demand in wheat and pulses would continue to bear fruit.

He said the Government would continue to take monetary and fiscal steps to moderate inflation.

The Finance Minister also had a meeting with the Reserve Bank of India Governor, Dr Y.V.Reddy.

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