Steps to combat inflation to be announced shortly: Pranab

Finance Minister Pranab Mukherjee has said that the government will announce more steps to contain inflation later in the day.

"Last evening, it (steps to check inflation) was finalised. I think it will be issued today", he said answering questions on yesterday's meeting to check rising food prices.

"We have analysed the situation. We have indicated what further steps we are going to take. We have also indicated that there should not be any unnecessary panic", he said.

Food inflation for the week ending January 1 slipped to 16.91 per cent from the year's high of 18.32 per cent a year ago during the previous week. 

When asked whether the government will be able to contain surging inflation, the Finance Minister said, "of course". 

Mukherjee further said that within the food basket, the prices of items like vegetables including onion, fruits, milk, egg and meat are becoming dearer.

Following Tuesday's high-level meeting called by Prime Minister Manmohan Singh on price rise, Mukherjee met Planning Commission Deputy Chairman Montek Singh Ahluwalia, Agriculture Minister Sharad Pawar and Cabinet Secretary K M Chandrasekhar.    

The meeting deliberated on the steps to contain price rise, especially of the essential kitchen items like onion and other vegetables.