As the inflation surged to over a year high of 5.44 per cent during the week ended June 17, the government on Friday said rising prices are certainly a cause for concern and it will take further action to contain them.
"The situation is being monitored at every level. We are addressing it (rising inflation). We are trying to address it with a slew of measures which we hope will be effective. We will take further action if the need arises," a key Finance Ministry official said.
He said the impact of measures taken by the government last week would start having an impact.
Alarmed by the price rise of essential commodities, the Government swung into action and initiated measures to augment supply of pulses, sugar and wheat.
It allowed duty free imports of pulses and sugar, and drastically slashed customs duty on wheat to five per cent from 50 per cent.
The government also suspended export of pulses till the festival of Diwali, which falls in October.
"There are items that impact the daily lives of people and they have to be addressed. It's a continuing process. Whatever can be done should be done and will be done," he said.
The official said the government is hopeful of a good monsoon and handsome agricultural production this year, which will also have a softening impact on inflation.