New Delhi: Prime Minister Manmohan Singh held a late night meeting with Union Finance Minister P Chidambaram and RBI (Reserve Bank of India) Deputy Governor Rakesh Mohan to mull over the rising inflation as international crude prices continue to soar and monsoon remains erratic.

Chidambaram made a detailed presentation on the inflation situation, which rose to 7.51 per cent in the week ended July 24, official sources said today (Aug 10, 2004).

A strategy was being devised in this regard in consultation with the coalition partners and allies, they said.

Meanwhile, the Cabinet Committee on Economic Affairs would hold a meeting to consider various options in a bid to ensure that the Opposition does not make it a major issue in Parliament, which meets on August 16.

Petroleum Minister Mani Shankar Aiyar has sought lowering of duties on petroleum products to prevent a deep effect on inflation and rising fuel prices internationally.

One of the major reasons for inflation was excess liquidity in the market.