Inflation eased off a bit and was seen at 7.19 pc on April 5 compared to the previous week’s 7.41 per cent. Inflation figures for a particular week are generally announced on Fridays, but Friday being a public holiday, the figure was announced earlier this week.

Reserve Bank Governor Y V Reddy on Wednesday admitted that inflationary pressures have turned to be more than the expectation and indicated that some steps may be taken in the forthcoming annual credit policy to rein in soaring prices.

The RBI is due to announce the annual Credit Policy on April 29 and economists are expecting hike in the CRR in the wake of inflation touching a three-year high of 7.41 per cent, bringing the government under political and public pressure.

Finance Minister P Chidambaram said on Wednesday that inflation control measures like sucking excess money out of the economy and the robust GDP growth cannot go hand in hand. Chidambaram has recently stated that if GDP growth was to be sacrificed by some margin, the government would not mind it for controlling inflation. Accusing cement and steel industry of entering into cartels to exploit consumers, Finance Minister P Chidamabaram, warned of tough measures to check rising prices

Meanwhile, the government has taken a host of initiatives, including scrapping of duty on various edible oils and banning import of non-basmati rice and pulses to contain inflation.