Inflation still high and needs to be addressed: Rangarajan

Prime Minister's economic panel today said the inflation level still remains high despite signs of weakening and needs to be addressed.

"There are signs of weakening, (but) the level of inflation still remains high. You must continue to address the problem," Prime Minister's Economic Advisory Council Chairman C Rangarajan said on the sidelines of a conference on 'Financial Inclusion'.

Although food inflation has fallen to 9.53 per cent during the week ended July 24, overall inflation was in double-digit at 10.55 per cent in June.

Finance Minister Pranab Mukherjee said yesterday that Centre had done whatever was possible to blunt inflation and it was for the states to take action against hoarders and revamp the public distribution system to check prices.

He said supply shortage of items like pulses and edible oil, in tandem with hardening of international prices, had compounded the situation, yet the government's efforts have brought down food inflation from 21 per cent in December to 9.55 per cent now.

Replying to a debate on inflation in the Rajya Sabha, Mukherjee had said most areas like PDS and enforcing the Essential Commodities Act lay with States.

"I shudder to think of a central mechanism to control the distribution system in over six lakh villages," he had said, rubbishing the charges that the government is insensitive to the plight of the poor.