From correspondents in Delhi, India, 11:02 PM IST

Rising food prices and spiralling rates of vegetables might be affecting millions in the national capital, but Delhi Chief Minister Sheila Dikshit Monday said the situation is 'not so grim'.

'The rate of inflation as far as daily consumable items for the 'aam admi' (common man) are concerned comes to 6.14 percent against overall 11.05 percent inflation (as the central finance ministry has said),' Dikshit said after a cabinet meeting.

She said the 11.05 percent inflation is due to rise in prices of products like cement, steel and petrol.

The state government also claimed that Delhi is still the cheapest metropolitan city in the country.

'Annual rate of inflation during 2007 at national level was recorded at 6.5 percent. But in Delhi it was only 4.9 percent, which is lower than 9.1 percent in Kolkata, 5.1 percent in Chennai and 6.3 percent in Mumbai,' she added.

She said the increase in retail prices of essential commodities in Delhi reflects mixed trend. Consumers may yet to see the difference, but the chief minister said there has been a decrease in prices of urad dal, potato and tomato.

Eyeing at assembly elections later this year, she announced that her government would supply 2 million litres of edible oil through public distribution system. The decision would enhance availability of edible oils like palm and soya in Delhi.

(Staff Writer, © IANS)