Inflation to moderate via steel, cement price cut: FM

Finance Minister P Chidambram said that the government reserves the right to take administrative measures. He said that the rise in inflation is because of fuel, power and manufacturing items. He assured that inflation would moderate once the steel and cement price cuts take effect. He added that the power fuel and lubricants will continue to rule high because of high crude prices.

Chidambram said that he would probe into the matter of the high lignite prices and inquire why prices are rising .