Finance Minister P Chidambaram on Thursday said there is still pressure on prices, but monetary measures have started having an impact on the growth of money supply.
"I met RBI Governor Y V Reddy. Governor said there is still pressure on prices ... I am in broad agreement with him," Chidambaram told reporters after the Cabinet meeting in New Delhi.
RBI chief informed the Finance Minister it would take some time before the monetary measures start showing effect on prices.
Chidambaram's comments came a few hours before the release of the fresh data on inflation for the week ended July 4.
The inflation has already come close to the 12 per cent mark.