India is confident that steps taken to reverse rising prices will moderate inflation, but the world community has not done enough to address problems of costly food and fuel, the prime minister said on Tuesday. Widely watched wholesale price inflation has in recent weeks accelerated to above an annual 7 per cent, its highest levels in more than three years, due in large part to fast rising global prices of key commodities. This has added to policy headaches facing both the central bank and the government, which faces a string of state elections this year and federal polls scheduled for 2009. "The government is fully alive to the challenge and has taken several steps to reverse the recent spurt in prices. I am confident that we will be able to moderate the prices rise," Manmohan Singh told a gathering of top Indian businessmen.