New Delhi: Inflation is on the rise again. It hit a nine-month high of 5.1 per cent for the second week in a row.
The previous week, it was 5.02 per cent. Inflation rose to due to a rise in costs of manufactured goods and aviation turbine fuel.
Reacting to the rising inflation, Finance Minister P Chidambaram said that he will do whatever it takes to control inflation but explained that the Indian economy will continue to be affected by rising global prices of commodities.
The wholesale price based inflation breached the crucial five per cent level - the Reserve Bank's tolerance level for the current fiscal - for the second week in a row prompting many schools of thought to believe that a soft interest rate regime is unlikely any time soon.
Chidambaram also said that the Government was ready to take any fiscal steps to keep inflation under check.
"We are ready to take any fiscal step to keep inflation under check," Chidambaram said, adding that the government was willing to take measures on monetary and other front as well.
Chidambaram also said that international and national factors have contributed to the rise in the rate of inflation to nearly five per cent now from a low of 3.11 per cent.
Citing examples, he said the international prices of crude oil, palm oil and rice, which India imports, have been on the rise, contributed to inflation here.
During the week under review, inflation rose due to rise in prices of some manufactured items and aviation turbine fuel.
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