NEW DELHI (Commodity Online): Food prices inflation could be contained only when the gap between demand and supply of the food commodities are met, said India’s Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Speaking at a financial journalists’ conference, he said the inflation is expected to set ease by December. Managing the demand and supply situation is the only one way to keep prices under check, he added.

However, containing inflation expectations will pose major policy challenges in the remaining months of this fiscal year through March 2010, the panel said in a note.

Meanwhile, India’s Central government on Thursday brought forward more realistic picture of food inflation in the country, which rose by 13.39% during the week ended October 24.

The new data compiled with government has shown that the rapid rise of potato and onion prices was the reason for the sharp food inflation spurt. Trade sitting at the comfort of home. Start with a mere 50$

A new system for presenting the inflation data of primary articles and fuel on a weekly basis, which has been introduced from Thursday, says the prices of potato have doubled during the one-year period ending October 24, 2009.

Prices of onion have also shot up by 50% during the year, while pulses rose 23.45%. The inflation for primary articles, which also include non-food items, grew by 8.94%.

The other items, which recorded over 10% increase in prices are rice (12.19%) and milk. On the other hand, non-food items, which include fiber, oil seeds and minerals, declined by 0.25%. Also the index of fuel, power, light and lubricants decreased by 6.2%.