Finance Minister P Chidambaram on Saturday said the government was taking all necessary "fiscal" steps, including improving the supply of agriculture commodities, to contain rising prices while ensuring that the steps would not affect growth.

"We are seeing an unusual growth demand. GDP is growing at over 9 per cent, year-on-year credit growth is 30 per cent, and money supply is growing at 21 per cent. This is an unusual growth combination," he said at second annual convention of Association of National Stock Exchange Members of India in Mumbai.

Inflation based on the wholesale price index accelerated at the fastest pace in more than two years to 6.58 per cent for the week ended January 27 from 6.11 per cent the previous week, according to data released by the government on Friday.

"The government will take all necessary fiscal measures while monetary steps (to be taken) is the domain of the Reserve Bank of India. We need to proceed with a great deal of caution," he said, adding that steps to moderate inflation needs to be taken "without affecting growth."

"We have to see that inflation is moderated, and growth is accelerated," the minister said.

Chidambaram said one step to moderate inflation was to increase the supply side.

"There are no short-term answers for increasing supplies," the Finance Minister said.