New Delhi: In the backdrop of spiralling inflation, the government will today review the situation arising out of surging prices, particularly of some food and metal items.

"Cabinet Committee on Prices will meet on Monday," a senior Food Ministry official said.

Inflation rate surged to 13-month high of 6.68 per cent for the week ended March 15 as against 5.92 per cent a week ago mainly on account of costlier food items like vegetables and mustard oil and metal products like joist and rolls and bright bars. Commerce Minister Kamal Nath had on Friday said the government is looking at a proposal to ban non-basmati rice exports.

"We are also going to recommend scrapping of import duty on steel," he had said after metal and food prices pushed inflation to over a year high. Another high-level meeting will be held on Wednesday to consider measures for maintaining adequate supply line, according to Commerce Secretary G K Pillai.

He had earlier said that empowered Group of Ministers on prices, headed by External Affairs Minister Pranab Mukherjee, would meet on April 2 to review prices of rice, wheat and procurement of edible oil.

While CCP might consider fiscal or quantitative steps to control spiralling prices, the Reserve Bank may further tighten money supply even at the expense of some growth, if high inflation continues. The central bank is slated to take a call on its monetary stance at its annual policy on April 29.

Source : PTI