Thursday, June 29 2006 12:45 Hrs (IST) - World Time -

New Delhi: Taking note of the sky-rocketing prices, the Government today (June 29, 2006) said it is vigilant and will not hesitate to take policy measures to contain it.

"The Government is vigilant and has taken steps. Let us hope inflation will remain under control," Chief Economic Advisor Ashok Lahiri told sources a day ahead of release of crucial weekly inflation figures.

Wholesale prices based Inflation rose to a 13th month high to 5.42 per cent for the week ended June 10 and there are concerns that it may rise further due to cascading effect of fuel prices and costlier food items.

"Policy making is a continuous process. As and when a response is required, the Government will respond," Lahiri said when asked whether the Centre is contemplating further measures to check inflation.

On interest rates he said, "Wait for a decision by the US Federal Reserves on interest rates tomorrow."

"The world will take cue from it," he said adding the world over interest rates have hardened.