He said worldwide the prices had increased, which was affecting prices in the country too. Besides the money supply in the country had gone up due to investment. ''The government will carefully watch and take monetary measures. We have got to balance price stability with growth,'' he said.
As long as there is supply demand mismatch in food, it would be difficult to bring down prices, he said.
The Finance Minister said the National Food Security Mission and the National Agriculture Mission launched by the government would greatly reduce the demand supply mismatch in the farm sector.
He, however, said the country was largely self-sufficient in foodgrains, but it needed import of oil and pulses.