Montek says no ‘magic bullet’ to fight inflation

Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that there was no magic bullet with the United Progressive Alliance Government (UPA) to control inflation and consumers would have to shell out more if crude oil prices rise further.

The government had a commitment to insulate the poor but if import prices increase, it could not insulate the domestic consumer indefinitely, he said in an interview to a local news channel.

Ahluwalia said that the Planning Commission was of the view that consumers must pay except those who needed subsidies and that to should be limited and targeted.

Hoping that inflation would come down by September–October this year, he said more patience was needed to deal with large problems.

Latest inflation data revealed that the inflation rose to 8.75 per cent during the week ending May 31, rising from the previous week's 8.24 per cent.

The inflation rate is now at it's highest since February 10, 2001, when it was 8.77 per cent.

The figure may cross 9 percent when the impact of fuel price rise is taken into account.

The Central Government on June 4 upped the price of petrol by Rs 5 a litre and that of diesel by Rs 3 a litre. The price of Liquefied Petroleum Gas (LPG) also was increased by Rs 50 per cylinder. There was no increase in the price of kerosene. (ANI)