Concerned over the high rate of price rise, the Government today said 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,” the new Cabinet Secretary, Mr Ajit Kumar Seth, told PTI after meeting the Agriculture Minister, Mr Sharad Pawar, here.
The Finance Ministry and the Reserve Bank have also expressed their worries over high inflation.
Inflation, as per the Wholesale Price Index (WPI) data, went up to 9.06 per cent in May from 8.66 per cent in April following an increase in the prices of essential items like fruits, milk, petrol and manufactured goods.
The central bank has hiked key policy rates nine times since March 2010 in its bid to tame inflation.
According to a latest RBI report, “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 the price rise.
When asked about a possibility of rate hike by the central bank, Mr Seth said: “I cannot pre-judge what RBI is going to do at this point of time.’’
Inflation continues to remain high despite the central bank’s move to raise the lending (repo) and borrowing (reverse repo) rates.
Regarding his meeting with Mr Pawar, Mr Seth said it was a courtesy call.