Worst of food inflation over; prices to stabilise, says PM

Under attack over spiralling prices, Prime Minister Manmohan Singh today said the worst of food inflation is over and the situation will ease soon.

"... The worst is over as far as food inflation is concerned. I am confident that we will soon be able to stabilise food prices," he said addressing the Chief Ministers' conference on food prices here.

"Food prices have softened in recent weeks and I expect this to continue," he told the Chief Ministers who voiced serious concern over the rising prices.

In a stern warning to hoarders, the Prime Minister said powers under the Essential Commodities Act would be used against them to stop artificial scarcity.

Driven by rising prices of essential food items like pulses and vegetables, food inflation touched a decade high of nearly 20 per cent in December before moderating a little bit in January.

The Prime Minister said that good crop prospects and increasing linkages between the domestic and global food prices would help in stabilising the food inflation.

Thanking Food and Agriculture Minister Sharad Pawar, who has been under attack both by the Opposition, allies and a section of Congress, for convening the conference, Singh said, "We are all very concerned about the distress that the sharp rise in food prices has caused to the common man."