"Inflation is supply side problem. We have to manage it," Chidambaram told PTI. The wholesale prices-based inflation rose to 5.45 per cent for the week ended November 18 from 5.29 per cent in the previous week. Inflation was at 4.27 per cent during the corresponding week last year.
Chidambaram had on Friday said all macro-economic parameters are good, but inflation is the only worrying factor.
"It (inflation) is slightly higher than we would have liked, but then I have said it is largely driven by supply side constraints," he had said.
Chidambaram was confident that inflation would be tamed with better supply side management, new sugar stocks and new crop of wheat expected early next year.
The Finance Minister had said with economy growing at high rate, some kind of inflation is inevitable. At current growth rates (economy grew by 9.1 per cent in the first of this fiscal), inflation around four per cent is tolerable and that is where the government intends to bring it down in due course, he had said.
"We should bring inflation below five per cent and we must move towards four per cent," he had added.
