Saturday, September 9 2006 11:38 Hrs (IST) - World Time -

New Delhi: As inflation touched 5.01 per cent for the week ended August 26, the Government yesterday (Sept 8, 2006) sought to play it down, saying there was nothing alarming about it, but promised to do everything possible to beat back the price- line below the five per cent mark.

The wholesale price-based inflation soared to 5.01 per cent during the week under review from 4.91 per cent in the previous week, as prices of essential items like fruits, pulses and vegetables rose.

Earlier this year, inflation had crossed five per cent mark in the week ended June 17 and June 24, standing at 5.22 per cent and 5.44 per cent, respectively.

In fact, the Government revised the final inflation figure for the week ended July 1 to 5.21 per cent from the provisional estimate of of 4.96 per.

Finance Minister P Chidambaram told reporters that though 5.01 per cent figure is technically above five per cent, this is not something to be alarmed about.

"It's our intention to keep it below five per cent. There has been some supply side disruptions of vegetables and fruits etc. There continues to be some pressure on wheat and pulses (as well)," he said.

He said the Ministry of Food and Consumer Affairs was best equipped to address issues of supply of wheat and pulses. "Given the difficulties on supply side for wheat and pulses, we will look at whatever steps to be taken to keep inflation below five per cent."

The Asian Development Bank on Wednesday said rising food prices and delays in fuel oil price adjustments are adding further to inflationary pressures in India.