The Cabinet Committee on Prices will meet on Tuesday and is likely to consider various options to curb rising inflation and keep essential commodities from spiralling further.
Food inflation stood at 18.22 per cent during the week ended December 26, 2009. Prices of metals, basic raw material for industry, have also shot up in the last 45 days.
To reverse the rising trend, the Cabinet Committee on Prices (CCP) to be presided over by Prime Minister Manmohan Singh may explore options like easing imports of essential commodities.
Containing sugar prices, which have more than doubled over the last one year to Rs 45 a kg in the retail market, is among the major concerns for the government.
The government has put a virtual ban on sugar exports and liberalised import of several steel items.
The rise in prices is worrisome as it is feared it may lead to hardening of interest rates and could hit economic recovery.