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| Inflation down, but no room for complacency: FM |
| Press Trust of India / New Delhi Feb 16, 2009, 17:41 IST |
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Finance Minister Pranab Mukherjee today said there is no room to be complacent about inflation even though the rate of price rise has fallen to 4.39 per cent now, against the peak of around 13 per cent in August 2008.
"We have weathered the crisis, but there is no room for complacency," Mukherjee said in his Interim Budget speech.
Inflation declined by 0.68 percentage points during the week ending January 31 to 4.39 per cent from 5.07 per cent a week ago. It stood at 4.74 per cent in the year-ago period.
Mukherjee said inflation had shot up nearly 13 per cent in the first week of August 2008.
"To ease supply side constraints, the government took a series of fiscal and administrative measures, in concert with monetary policy measures by the Reserve Bank of India," he added.
Mukherjee said the apex bank raised the interest rates to mop up excess liquidity to check high inflation that time, which in turn, had implications on the growth rate from both demand as well as supply side.
This, along with easing global prices, led to a decline in the domestic prices with inflation rate falling to 4.4 per cent on January 31, 2009, he added.
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