New Delhi, Oct. 14: The government and the Reserve Bank are committed to maintaining price stability even when the rate of inflation is over 4 per cent, the finance ministry said.

“The government and the central bank are committed to price stability and moderate inflation,” chief economic adviser Ashok Lahiri said after the rate of inflation rose to 4.24 per cent during the week ended October 1.

He expected the average annual inflation to remain below the RBI-projected 5-5.5 per cent this fiscal.

Earlier, finance minister P. Chidambaram had assured that inflation would be within tolerable limits, although there could be moderate impact of domestic oil rate hike on the overall price level.

A surge in the prices of vegetables, edible oil and other food items, industrial fuels and manufactured products pushed up inflation to 4.24 per cent during the reporting week from 3.97 per cent a week ago.

The delayed impact of the fuel price hike, festival demands and seasonal factors may have led to the rise, although it was lower than 7.15 per cent a year ago.