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India to contain inflation despite jump in recent weeks


NEW DELHI, Oct 15 (AFP): India will be able to keep a lid on inflation, despite a rise in recent weeks following two successive hikes in petrol prices, the finance ministry's chief economic advisor said yesterday.
"The government and Reserve Bank of India (central bank) are committed to price stability and moderate inflation," Ashok Lahiri told reporters, on being asked about the rise in the inflation rate to 4.24 per cent during the week ended October 1.
Inflation stood at 3.97 per cent a week ago.
Lahiri said he expected average annual inflation to remain below the central bank's forecast of 5-5.5 per cent for the current fiscal year.
"Inflation continues to be moderate," the chief economic adviser said.
Last month, the government raised petrol and diesel prices by about seven per cent after boosting them by a similar amount in June.
India imports 70 per cent of its crude oil needs and has been engaged in a frenzied quest to secure new oil and gas supplies at home and abroad to sustain its burgeoning economy.