New Delhi: As inflation has touched 8.75%, the highest level during the UPA regime, Finance Minister P Chidambaram today said the rate of price rise is high prompting the Reserve Bank of India (RBI) to tighten money supply.
"Inflation is high. RBI must take steps, and it has taken," Chidambaram told reporters after meeting the top brass of Central Bank of India.
This was the first statement from the Finance Minister after the Reserve Bank hiked its short-term lending rate by 0.25% to 8% putting pressure on interest rates.
Inflation has soared to 8.75% for the week ended May 31. It is set to cross the 9% mark when data is released on June 20.
The previous high during the UPA regime was 8.33% as per the provisional figure for the week ended August 28, 2004.
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