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| Govt closely monitoring price situation: FM |
| Press Trust of India / New Delhi Jan 20, 2010, 18:32 IST |
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The government today said the current high inflation, which crossed 7 per cent in December driven by costlier food prices, is a matter of concern and it is closely monitoring the situation.
"It (high inflation) is a matter of concern, no doubt... Certain steps are going on. Situation is constantly under review," Finance Minister Pranab Mukherjee told reporters.
Wholesale price-based inflation shot up to more than a year's high of 7.31 per cent in December on higher food prices, mainly sugar, pulses and potato.
The December numbers have already overshot RBI's full fiscal forecast of 6.5 per cent.
Mukherjee said the government has already liberalised imports to meet the shortage of essential commodities.
Most of these items are duty free, he said, adding, "We have also ensured availability of wheat and rice at different places through offloading and open market sales scheme by Food Corporation of India."
Amid the government trying hard to keep prices from rising, food inflation eased a bit to 17.28 per cent during the week ended January 2 from 18.22 per cent a week ago.
The government last week allowed duty-free white sugar imports till December, eased raw sugar processing norms and announced plans to off load 2-3 million tonnes foodgrain in the open market.
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