BJP slams government over split views on inflation

BJP slams government over split views on inflation
New Delhi: The Bharatiya Janata Party (BJP) attacked Union Home Minister P Chidambaram today over his remarks on inflation alleging that it exposed fissures in the Union Cabinet and the Congress over the sensitive issue of price rise.

The BJP's attack came after Chidambaram voiced his concern over spiralling prices.

The former finance minister had said "there is no tax worse than inflation".

Shahnawaz Hussain, spokesperson of the BJP said, "Different remarks on price rise only reflects the infighting within the Congress and that, the Cabinet is divided on various issues."

Chidambaram had admitted that it was the duty of the government to maintain price stability.

"Inflation is high, food inflation is very high...Some administrative prices have to be corrected. There is a very vigorous debate in Parliament on whether administered prices should be corrected when the inflation is high", Chidambaram said.

Echoing Chidambaram's concerns, C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (EAC) said, "Food inflation may spill over to other sectors too."

Food inflation rose to a 10-week high of 14.44 per cent for the week ended December 18,2010 on the back of a rise in onion prices by almost 40 per cent on an annual basis, touching Rs 75-80 per kg in the retail market.