No tax worse than inflation: Chidambaram

Concerned over high inflation, Union Home Minister P Chidamabaram on Wednesday expressed doubt on whether the government had all instruments to check price rise.

Updated: Jan 06, 2011, 00:28 AM IST

New Delhi: Concerned over high inflation,
Union Home Minister P Chidamabaram on Wednesday expressed doubt on
whether the government had all instruments to check price
rise.
"Inflation is high, food inflation is very high... we are
not sure whether we have all the tools in hands to control
food inflation," Chidambaram said at a function organised by
Skoch consultancy.

Chidambaram, who served as Finance Minister before moving
to the Home Ministry in the previous UPA regime, said while
there is a duty to maintain price stability yet some
administrative prices have to be corrected.

His remark came in the backdrop of Empowered Group of
Ministers headed by Finance Minister Pranab Mukherjee
postponing indefinitely fuel price rise on Oil Minister Murli
Deora`s insistence.

Chidambaram said there is no tax worse than inflation.

"If you have high income that is eaten by inflation," he
added.
Food inflation rose to a to a 10-week high of 14.44 per
cent for the week ended December 18 on the back of onion
prices which rose by almost 40 per cent on an annual basis
touching Rs 75-80 per kg in the retail market.

The overall inflation was 7.48 per cent for the month of
November 2010.

The price rise is also quite steep in case of tomatoes,
green vegetables among others.

PTI