Govt taking stock of inflation

Concerned over high rate of price rise, the government said on Wednesday it is monitoring inflation, which has crossed the 9 per cent mark.

"There is nothing to be alarmed about the current inflation...the government is taking stock of the situation and will take appropriate steps if need be," new Cabinet secretary Ajit Kumar Seth told PTI after meeting Agriculture Minister Sharad Pawar in New Delhi.

The Finance Ministry and Reserve Bank have also expressed their worries over high inflation.

The inflation, as per the data on the Wholesale Price Index, went up to 9.06 per cent in May from 8.66 per cent in April following an increase in prices

of essential items like fruits, milk, petrol and manufactured goods.

RBI has hiked key policy rates nine times since March 2010 in its bid to tame inflation.

According to a latest report of RBI, 'Inflation is likely to continue facing upward pressure'.

Experts have predicted that the central bank would raise key policy rates by at least 25 basis points in its mid-quarterly policy review on Thursday to curb price rise.

Asked about a possibility of rate hike by the central bank, Seth said, "I cannot pre-judge what RBI is going to do at this point of time".

Inflation continues to remain high despite Reserve Bank of India's move to raise lending (repo) and borrowing (reverse repo) rates.

Regarding his meeting with Pawar, Seth said it was a courtesy call.