PM to meet CMs to chalk out inflation strategy

Concerned over rising prices of essential food items, Prime Minister Manmohan Singh has called a meeting with the state chief ministers tomorrow to chalk out strategy to combat inflation.

The meeting follows Congress Working Committee (CWC) deliberations on price rise today during which party members are believed to have expressed concern over surging inflation and suggested that government should take steps to contain it.

Earlier in the week, Singh had discussed the issue with the state chief secretaries and impressed upon them the need to improve public distribution system and increase farm productivity.

The Prime Minister, in his meeting with chief ministers, will discuss food price situation and review implementation of the Essential Commodities Act to check hoarding of food items.

He is also likely to ask states to fully utilise their allocations of cereals under the PDS as well as open market sale scheme.

Driven by rising prices of pulses and vegetables, food inflation soared to a decade's high of about 20 per cent in December before declining a bit to 17.56 per cent in January.

The wholesale price-based general inflation, from sub-zero level last year, crossed 7 per cent in December and is estimated to climb to 8.5 per cent by March.