He said that while this year's inflation would be no more than 2.5 per cent, the next year's level of 3 per cent is acceptable.
"There's no need to be overpanic. Goods prices now are at reasonable levels," he said.
He noted that amid high oil prices the ministry could not bar manufacturers from raising prices, but the increases must be reasonable.
Earlier, the ministry approved thei price hike in instant noodles and vegetable oil.
- The Nation