India committed to price stability: PM

Amid inflation reaching worrying levels, Prime Minister Manmohan Singh said on Friday that the country is committed to ensuring price stability as it moves on the growth path of 9-10 per cent.

". . .as India moves forward towards a growth path of 9-10 per cent per annum," it needs to commit itself to reasonable price stability, Singh said while releasing a compendium of key speeches of Reserve Bank of India governors .

Singh said this in the presence of RBI Governor D Subbarao who is due to unveil the quarterly review of monetary policy on January 29.

In the wake of wholesale price-based inflation escalating to 7.31 per cent for the month-ended December and food prices increasing by over 17 per cent, it is expected that RBI will signal tightening of money supply.

The prime minister would also be meeting the chief ministers later this month to review the price situation, particularly with regard to essential commodities like pulses, and sugar.

Singh said the growth path also commits itself to inclusion of the poor in the financial and credit system of the country. The prime minister said he wants financial policies which pay attention 'to the needs of the poorer section of our community.'

Image: Manmohan Singh