In a major turn of events, New Zealand Government has taken a U-turn on its earlier stance of not ordering a thorough inquiry into rising price of milk, perhaps under the escalating pressure of opposition parties.

Well, opposition is thrilled to have cornered the government to kneel down on the issue which had become a talking point for one and all, after it came to knowledge that price of the milk is triggered artificially and not by natural market forces.

If reports are to be believed, the average price for two litres of standard milk in June was $3.68, compared to $3.23 at the same month in 2008, with a low point of $3.16 during the intervening period.

Acknowledging the growing concern among people over the variation in milk price, Prime Minister John Key said, “They feel frustrated and they're not convinced actually at the moment that they are getting fair a price”.

Though the government still believes that milk is fairly priced, Agriculture Minister David Carter yesterday favored for need of a parliamentary select committee inquiry.

"People are reacting against the fact, for example, that GST pushed the price of milk up", Labour leader Phil Goff said. "The Government seems to ignore the fact ordinary working families are really struggling with rising costs”.

Moreover, the government is waiting to hear final word from the Commerce Commission about the rights to conduct an inquiry into milk prices under the Commerce Act.