Chidu blames everybody else for the price rise

NEW DELHI: Finance minister P Chidambaram blamed everybody except his government for the unprecedented inflation. But he told the people not to “panic” and that the government was planning a slew of fiscal, monetary and administrative measures to rein in the spiraling prices.

He attributed the skyward trend to rising income in Asia and other parts of the world, high oil prices, international speculation, diverting 20% of food items to make ethanol by the US, financial turbulence in the world, cement and steel industries forming a cartel to rig prices, the NDA government diluting Essential Commodities Act, hoarding by traders in some states and so on.

“This inflation is largely triggered by international prices. We cannot panic at this time. This inflation is reflected in all international markets from China to Venezuela,” he said intervening in the discussion on price rise.  

“Our economy is growing by over 8% and to sustain that we have to consume large quantities of food and non-food items. If we are a large importer, we have to be large exporter too,” he said.