Ministerial group to review price situation

 In the backdrop of the rising prices, the inter- ministerial group (IMG) on inflation would meet tomorrow to review the price rise situation in the country. "The IMG will meet tomorrow," chief economic advisor Kaushik Basu, who chairs the panel, said.

The meeting would be attended by Reserve Bank governor, D Subbarao and will factor in the macroeconomic situation and discuss ways to control sprialling of prices.

According to Basu, the current rate of inflation was  "unacceptable" and may hit growth prospects.

Although food inflation was down to 8.5 per cent in April from the 20 per cent level it touched in February last year, actual prices of items of food continued to remain high.

The government, in February, constituted the IMG on inflation to suggest measures to control the spiraling prices.

Meanwhile, the Reserve Bank, has hiked key policy rates nine times since March 2010, in a bid to cool inflation.