Inflation reined in due to tight monetary policy: FM
"Inflation has been tamed because we have adopted rather a tight monetary policy," said the Indian Finance Minister in Colombo.business Updated: Nov 11, 2007 21:44 IST
Expressing satisfaction over the fall in inflation in India which has reached a five-year low at under three per cent, Finance Minister P Chidambaram on Sunday attributed it to a tight monetary policy.
"Inflation has been tamed because we have adopted rather a tight monetary policy," Chidambaram said in a reply to a question after addressing the Annual Lakshman Kadirgamar Memorial Lecture in Colombo.
India's inflation rate fell to its lowest level in more than five years as food staples such as fruits, vegetables and sugar declined, official data showed Thursday.
Wholesale price inflation declined to a new low of 2.97 per cent for the week ended October 27, compared to 3.02 per cent in the previous week, according to India's most watched cost-of-living index.
Inflation worries persist in India, like elsewhere in the region, as crude oil surges close to USD 100 a barrel.
Chidambaram, who is here on a brief one day visit, earlier called on Sri Lankan President Mahinda Rajapakse and Foreign Minister Rohita Bogollagama.