FM soothes CWC nerves

Congress president Sonia Gandhi today expressed anxiety over the high rates of inflation in the run-up to the polls, even as Union Finance Minister P Chidambaram assured the party that “things will settle down” by November.

In her opening remarks at the extended Congress Working Committee (CWC) meeting today, Gandhi gave the indication that, since the inflation woe continued, she did not favour polls this year. “After two months, some states will have Vidhan Sabha polls, and then, next year, there will be Lok Sabha polls.”

With the Congress-led United Progressive Alliance government at the Centre coming under attack on the rising prices, Chidambaram briefed the delegates about the price situation and said the government had taken fiscal and administrative measures to control inflation.

The finance minister was specially invited to attend the CWC meeting as it discussed the poll-preparedness of the party.

Chidambaram told his party colleagues that although government measures took 9-12 months to show effect, there were already signs that inflation was calming down.

He also explained how global prices, especially crude oil prices, had affected commodity prices. “Only 9 per cent of the oil price burden was transferred to the consumers while the government absorbed 91 per cent. But that increased the price index by almost 4 per cent.”

Gandhi asked the government leaders to bring down prices further. She also announced the “quota system” by various leaders to distribute tickets to their own people will have to go.