Reserve Bank of India Governor Y V Reddy met Finance Minister P Chidambaram on Thursday and is understood to have discussed the steps to be taken to further contain price rise.
Before the meeting, Chidambaram told a press conference that food prices, particularly wheat and pulses, are the area of concern and the government would continue to take fiscal and monetary measures to contain the inflation.
Inflation declined to 4.56 per cent during the week ended September 16 from 4.61 per cent a week earlier.
"It is our intention to keep inflation within four per cent," the finance minister said and expressed hope that other departments would also take measures to augment supply of wheat and pulses to reduce supply side mismatch in these commodities.
The steps taken by the government to increase supply of wheat, pulses and sugar have yielded results, he said.
On reports that there are differences between RBI and the finance ministry over interest rate regime, Chidambaram said these are 'presumed' differences and not real ones.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
