KOLKATA: As food inflation spiralled to over 17 per cent, the government today said that the price situation is being reviewed regularly and surge in prices of essential items would be controlled soon.

"The process is on to control the price rise. I am hopeful that the prices of essential items will be in control soon," Finance Minister Pranab Mukherjee said after receiving the Indira Gandhi Gold Plaque at the Asiatic Society here.

"There is an imbalance between the demand and supply and the Centre has taken notice of it. Some people were taking advantage. The government has taken the initiative to increase the supply line so that there is a balance with the demand ratio," he added said.

He said that a committee has been formed and the price situation was being reviewed.

The Centre on Saturday announced setting up of a committee, comprising chief ministers of 10 states, along with the Finance Minister, Food and Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia to suggest various ways to tame rising prices, including revamping of public distribution system.

"The Centre has taken some concrete steps like liberalizing imports and removal of duties. The PDS has been totally revamped so that people can get the benefit of steps taken by the government," Mukherjee, who is Chairman of the planning board of Asiatic Society, said.

The wholesale price-based general inflation, from sub-zero level last year, crossed 7 per cent in December and is estimated to climb to 8.5 per cent by March.