IIF, 30th April 2005 : The Rise in inflation continuously and touching its highest level at 5.64 % in last four months is a cause of worry irrespective of the fact that there has been no change in oil prices and wide ranging reductions in excise and customs duties announced by the Finance Minister in Union Budget 2005 said Prof. J.D. Agarwal, Chairman, Indian Institute of Finance.

Prof. Agarwal has urged the government to keep inflation under control at the current rate and ensure that the reductions given in customs and excise are passed onto consumers by the Industry and business immediately. It is unfortunate that manufacturers of various cars and other white goods announced reductions in the prices of their products and gained publicity through newspapers and media but the distributors and retailers continued to charge either the pre-budget prices or even raised prices of the wide ranging products on which the reduction in customs and excise have been announced.

Dr. Agarwal reiterates that the government must look into unethical business practices adopted by some of the industry and businesses seriously so that the interest of consumers and nation is protected. According to him, it is upon the government to evolve appropriate mechanisms to ensure that the reduction in excise and customs are passed to the consumers properly. The Government is powerful and can do it but no steps unfortunately have been taken by the Government in this regards for the reasons best known to the government said Prof. Agarwal.