New Delhi: Finance Minister P Chidambaram tonight (Aug 19, 2004) promised more fiscal steps to contain inflation and assured the nation that there was no shortage of food grains and other essential commodities.

"Some more steps on fiscal sides will be taken, if necessary," he told reporters after the first meeting of Cabinet Committee on Pricing presided by Prime Minister Manmohan Singh.

Chidambaram said the inflation measured by consumer price index, a benchmark in many countries, was still three per cent.

"Let me assure you that there is ample supply of these commodities (food grains and other essential items). Perhaps because of drought in some areas and flood in some places, there can be some seasonal fluctuations," he said, adding there was no cause for "worry".

Asserting the decision to cut excise and custom duties on petroleum products would "dampen" inflationary expectations, he said the Government would carefully watch the situation.