Over the past one year the Prime Minister has kept a close track of the steps taken to keep prices under control. The Cabinet Committee on prices has met on several occassions and taken steps to ease the domestic supply constarints. The Government also reduced energy prices and import duties. The Reserve Bank has taken necessary actions to ease the demand side pressure on prices.

As part of the Prime Minister's effort to sensitize various constituents of the Government on inflation the Prime Minister has written to all the Chief Ministers apprising them of measures taken and underlining the role of the State Governments in keeping a check on prices of essential commodities.

The Prime Minister has advised the State Governments to put in place an appropriate mechanism for regular intensive monitoring of commodity prices in order to take prompt and necessary action to curb price rise. The letter of the Prime Minister to the Chief Ministers is placed below.