Click to play videoNew Delhi: The Prime Minister's focus is back on the bigger problem at hand - dealing with 11.05 per cent inflation. A flurry of high powered meetings took place in the Capital on Saturday morning to address rising inflation.
Finance Minister, P Chidambaram has now said that last week's inflation was caused by rising fuel prices. Chidambaram met Congress President Sonia Gandhi at 10 Janpath, while Manmohan Singh had a long session with RBI governor, Y V Reddy.
Among other things, Dr Singh discussed interest rates and the foreign exchange policy with the RBI governor. They studied the impact of the slew of measures which have been taken in the recent past to deal with the mounting problem.
Sources say the Prime Minister is expected to issue a statement on inflation shortly. It was clear that the economist that he is, Manmohan Singh was now going to focus on the pressing issue at hand.
There is increasing pressure from the party that the Government's priorities at the moment should be to contain price rise.
In a press statement, the Finance Ministry said inflationary pressures will continue. However, Finance Secretary, D Subbarao, says the rate is slowing down.
Stating that the momentum of inflation is slowing, Subbarao said food situation is quite comfortable and also manufacturing inflation is modest. However, there is little control over global uncertainties, he said, adding prices of crude oil depend on global factors.
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