New Delhi: Painting a rosy picture of the economy, Finance Minister P Chidambaram today (Dec 9, 2004) told the Lok Sabha that although inflation was a "problem", the "worst is over" with global crude oil prices beginning to moderate.

"I am absolutely confident the worst is over (on inflation) unless there are any external shocks," Chidambaram said winding up a four and a half hour debate on prices amid walkout by the NDA (National Democratic Alliance) Opposition accusing the UPA (United Progressive Alliance) Government of failing to protect the interests of the common man.

Expressing confidence that WPI will moderate soon, he said the Government would ensure that prices of essential commodities are within the reach of ordinary people.

Government is keeping a close watch on prices and will ensure the supply of essential commodities are maintained, the minister said adding further duty cuts could be resorted to in the Budget if necessary.

But dissatisfied with Chidambaram's assurance, the NDA members walked out saying he was trying to justify the increase in prices of petro-products fuelling inflation and was not interested in protecting the interest of common man.

Chidambaram rejected the Opposition charge that the UPA Government has failed to control the prices and said it has adopted a multi-pronged strategy to rein in inflation by fiscal and monetary measures like duty cuts and sucking out excess liquidity.

The very fact that the oil companies have taken a hit of over Rs 20,000 crore and the exchequer an additional Rs 4,400 crore by way of duty cuts went to show that the Government did not want to pass on the burden of rising global crude oil prices entirely to the common man, he said.