Terming soaring inflation rate as a global phenomenon, the government on Friday said it has no 'magic wand' to bring it down immediately though it is taking and will take all possible steps to contain price rise.

"Government has no magic wand to bring down inflation, which is now a global phenomenon. Due to rise in prices worldwide, it has become rather an imported inflation," Minister of Earth, Science and Technology Kapil Sibal told reporters, while briefing mediapersons after the Cabinet meeting.

According to official figures, inflation has touched a 40-month high of 7.41 per cent for the week ended March 29.

Referring to World Bank figures, Sibal said prices of agricultural commodities have gone up by 73 per cent in the international market during the period between August 2007 and March 2008 period.

It included 88 per cent rise in prices of food products, followed by 74 per cent rise in wheat prices, 72 per cent in rice prices, 71 per cent in fat and oil prices and 35 per cent increase in sugar prices, he said.

"Inflation is at a very high level in all emerging markets such as China (8.7 per cent), Russia (11.9 per cent), Argentina (7.3 per cent) and Turkey (8.1 per cent)," he said, adding the government was taking all necessary steps to contain inflation.

Elaborating on the measures taken by the government to contain inflation, Sibal said state governments have been asked to put limits on stocks of foodgrain.

Ruling out an increase in subsidies, he said efforts were being made to contain prices through duty cuts and other measures. Poor people will be supported through public distribution system, he added.

The prices of edible oil have already come down after duty cut and it may take some more time for this to happen in case of other commodities.

Sibal said the issue was taken up in the Cabinet meeting, adding that "we are ready to take, if required further steps to contain inflation".

While showing graphs and reading out detailed figures on world inflation, he said the situation was worse in some countries due to hike prices of food products as reflected by 'food riots' in some African and other countries.

On the impact of inflation on coming elections, he said "whenever there are elections we will come to know. But we want to convey the message to people that inflation is a global phenomenon and the government is taking all possible steps to limit its impact on India."

He also added the food prices have gone up by as much as 45 per cent in past nine months alone and foodgrain exporting countries like India, Vietnam and Columbia have responded by putting curbs on exports to contain the domestic price line.

When asked about the impact of the recommendations of the Sixth Pay Commission and higher budgetary allocations due to rise in inflation, the minister said "there is no impact so far".

• Inflation, the silent killer!