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India seeks global help to cool fuel, commodity prices
June, 04th 2008

India on Tuesday asked the global community to cooperate in bringing down energy and commodity rates, and said it may take further steps to tame inflation that has crossed eight per cent in the country.

"It requires the collective international intervention to ensure that energy is available at affordable rate, and also world commodities prices will have to be put in proper perspective as they sometimes grow detrimental to the developing countries," External Affairs Minister Pranab Mukherjee said at the annual general meeting of Assocham here.

He said energy and commodity prices affect most of the countries across the world.

Mukherjee said growth and inflation control are not conflicting objectives and both can go "side by side".

Minister of State for Finance P K Bansal said at another function, "The government is conscious of the situation and if required, we would take steps to contain inflation".

The government is "alive to the situation" and has taken steps, both fiscal as well as administrative, to bring down the rate of rise in prices, he said.

Meanwhile, global rating agency Moody's has said RBI may further tighten money supply to tame inflation since economic growth is healthy.

"Given that the Indian economy still appears healthy, the RBI may consider further monetary tightening to cool inflation, which is a threat to social stability," Moody's Economist Sherman Chan said in a statement.

Inflation for the week ended May 17 stood at 8.1 per cent against 7.82 in the previous week.

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