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New Delhi May 8 The Finance Minister, Mr P. Chidambaram, on Tuesday said that the Government would take all possible measures to moderate inflation.

He also said that the long-term solution to bring down inflation was to correct the supply-demand mismatch, which has been created mainly due to stagnation in production of wheat, paddy and pulses.

"In the medium to long-term, the durable solution is to increase supplies. If we don't address the supply side of essential food articles, there will be pressure on prices," he told the Rajya Sabha today.

Mr Chidambaram also said that inflation was spurred by the hardening of international prices of commodities, particularly metals and crude oil, supply-demand mismatch (first in sugar, then wheat and now in pulses), increase in money supply due to capital inflow and increase in demand as result of increase in public expenditure.

The country's wholesale price index-based inflation rate stood at 5.77 per cent for the week ended April 21, against 6.09 per cent in the previous week.

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Chidambaram for increasing supplies of food articles

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