Admitting challenges in taming inflation which remains above the comfort level of 4-5 per cent, Prime Minister Manmohan Singh today said it is making serious efforts to contain price rise.
“Our government is making serious efforts to moderate inflation rates,” Dr. Singh said at the Indian Labour conference here.
He said there are difficulties to check the price rise but the government “shall overcome” them.
Though the food and general inflation rates have been declining for the past few weeks, they remain quite high, giving hardship to the common man.
Despite some moderation, food inflation is still in double digits with the index hovering at 10.30 per cent for the week ended November 6.
The general rate of price rise, covering almost all the commodities, was 8.58 per cent in October.
The Reserve Bank of India has been following tight monetary policy to anchor inflationary expectations.
However, as Finance Minister Pranab Mukherjee said recently the pressure on prices is also coming from supply constraints.
According to experts, agricultural and manufactured items output has not been keeping pace with demand, leading to higher prices of food items and commodities.
