Rising inflation is a worry

The finance minister called on industry to trim the rate at which some manufactured product prices are increasing. Widely-tracked wholesale price inflation has been hovering above 5 per cent for several months, and officials have been pursuing ways to bring it closer to 4 per cent.The rate stood at 5.48 per cent in the week ended December 23. Chidambaram said inflation was being driven mainly by supply side He called upon manufacturers saying, “there is nothing wrong in making profits, but beware of entrenched core inflation. Cut costs to stabilise prices”.

Earlier in the day the FM said the ‘sacred’ ties of the tiller and the land should be respected, the government had on Monday stated the formation of rehabilitation policy soon.