Finance Minister P Chidambaram said on Thursday that the government would ensure ample supplies of essential commodities including food grains to check prices and assured more fiscal steps to contain inflationary pressures.
Asserting that the decision to cut petroleum duties would "dampen" inflationary expectations, he said the government would carefully watch the situation.
Emerging from the first meeting of the Cabinet Committee on Pricing, chaired by Prime Minister Manmohan Singh, he said, "We have reviewed the position of food grains, edible oil, sugar and pulses.
"Some more steps on fiscal sides will be taken," he said adding that inflation measured by consumer price index was still three per cent, which was the benchmark in many countries.
"Let me assure you that there is ample supply of these commodities. Perhaps because of drought in some areas and flood in some places there can be some seasonal fluctuations," he said asserting that there was no cause for "worry".
"On the supply side government would ensure that there are ample supplies of essential commodities. We will watch the situation carefully," he said.
Assuring that the government would watch inflation measured by wholesale price index, he said, "We will take such steps as are necessary from time to time."