Price rises with serious mismatch between demand & supply.

Pranab MukherjeeNew Delhi: Finance Minister Pranab mukherjee today told to the Lok Sabha said that he was forced to raise petroleum prices and that there were no differences between the government and the Opposition on the concern of price rise.

The minister said that local prices could not be low if the global prices had surged. Mukherjee defended “I was compelled to raise the petroleum product prices with global spurt in oil prices.”

Pranab said that there was no natural contradiction between growth and inflation and the government was trying to get growth with a moderate rate of inflation. “India was never known to have a high growth rate,” Pranab said.

Concerning growth and investment, he said that the government obligatory to create a climate favourable to investment in the country. “With serious mismatch between demand and supply, we need to moderate growth and inflation,” Mukherjee added.

Pranab said the government had brought down food inflation from 22 per cent to 8 per cent, refusal charges that his government was insensible to the poor.

He confesses the government was alert that more needed to be done to bring down prices. He said that “Inflation is high and I accept it should be around five per cent, but it is beyond our control.”

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