Ranchi: The CPM (Communist Party Marxist), which supports the Manmohan Singh-led UPA (United Progressive Alliance) Government from outside, said yesterday (Aug 22, 2004) that inflation and rising of prices would be stabilised within a month or two.

''Unprecedented rise in oil prices in the international market and drought in most part of the country have resulted in the rising inflation and price,'' CPM politburo member Sitaram Yechuri said in Ranchi.

He said the party was happy as the UPA Government agreed to reduce taxes in a bid to stall the price rise.

If there are good rains as expected, it would lead to good harvest, which again would aid in reducing prices, he added.

Asked on its future course of action on reduction of Provident Fund interest and FDI (Foreign Direct Investment) cap on insurance and telecom, Yechuri said a coordination committee of the UPA and the Left parties would meet shortly on to discuss these issues.