No need to panic over petrol price: PM.

(From Bulletin Wire)

Prime Minister John Howard has urged Australians not to panic as soaring petrol prices begin causing pain at the supermarket checkout, and renew fears of an interest rates rise this year.

Families already under pressure from higher petrol prices are now bracing themselves for hikes in the cost of milk, cheese and yoghurt from next week.

Consumer groups are warning prices on meat and vegetables could also start rising soon as companies pass on the higher costs of transporting their goods.

And a new inflation index released on Friday highlighted the prospect of a possible rate rise before Christmas because of the …