Prime Minister Manmohan Singh, his senior cabinet colleagues and chief ministers of 10 states began their deliberations on containing price rise in New Delhi on Thursday amid fears of inflation crossing the double digit mark.
The meeting is being held even as the Left parties went ahead with their nationwide agitation during which they courted arrest to protest rising prices.
The core group of chief ministers, set up in February, comprises Andhra Pradesh, Assam, Bihar, West Bengal, Punjab, Gujarat, Haryana, Tamil Nadu, Madhya Pradesh and Chhattisgarh.
Finance Minister Pranab Mukherjee, Food and Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia are also attending the meeting.
Inflation soared to 9.89 per cent during February and is feared to cross the double-digit mark in March - the data for which is likely to be released next week. Food inflation has been ruling at over 16 per cent.
The prime minister on the eve of the significant meeting had said: "The country has a problem and I would like all political parties to pool their knowledge, wisdom and experience to evolve practical, pragmatic solutions to these problems."