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- By Parinda News Bureau, January 10, 2007, 15:00 IST
The rising inflation in India worries the finance minister, P Chidambaram he said on Tuesday. Chidambaram asked the industry to reduce the rate at which some manufactured product prices are increasing.
The wholesale price inflation has been at around five percent for many months, and officials have been explorting options to bring it closer to 4 percent.
Finance Minister P Chidambaram said the inflation rate was being driven up mainly by supply side constraints as robust growth in the past three years of around 8 percent has left India's ports, roads and power generation stretched.
"As we close a good year, the only dark cloud is rising inflation," Chidambaram told an industry conference. "I have a nagging feeling that there are sectors that have smelt an opportunity to make profit because of high demand. There is nothing wrong in making profits, but beware of entrenched core inflation. Cut costs to stabilise prices."
Chidambaram also said there was a need for price moderation in housing and real estate sectors.
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