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8.1% Is A Worrisome Inflation: Chidambaram

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"Nobody has drawn any great satisfaction at 8.1 per cent inflation. 8.1 (per cent) is a worrisome inflation. But the measures, we have taken, have contained inflation. We are confident that we will gain mastery over this inflation and inflation will be contained over time," Chidambaram said in Delhi.

However, moderation in inflation depends on global crude oil and commodity prices, he said, adding, "Surely, we are still in full control over the situation." Crude oil prices, which touched a high of USD 135 per barrel, were trading at USD 126 per barrel today. The government is currently mulling how to address the issue.

The finance minister said any increase in administered prices of petrol would have moderate inflationary impact in the short term, but its effect on prices in the long term could not be predicted as there would be cut in expenditure under some heads as well.

He said the UPA Government under Manmohan Singh will do its best to moderate, contain and reverse headline inflation.

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"That is the message that I want people to know. We will do our best to contain, moderate and to some extent reverse headline inflation. We are doing our best, we will continue to do our best, we are open to ideas (for containing inflation)," he said.

Chidambaram said fiscal, monetary and administrative steps taken by the RBI and the government have contained inflation. "There are many other countries, which are not able to contain inflation at this level due to one or the other reason," he added. He once again said that the cement manufacturers have a scope to cut prices.

"I maintain that there is scope for cement manufacturers to cut prices, new capacities have been added, there is no reason why they cannot afford to cut prices," he said.