Prices will cool by fiscal-end, says Montek

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Inflation seen at 12.13 pct on Sept 20Inflation unchanged at 12.14 pcInflation in double digit till Jan: SenInflation coming under control: PM's aide

The country will get some respite from the soaring inflation by the end of this fiscal. Planning Commission deputy chairman Montek Singh Ahluwalia on Thursday joined the host of economists in saying that headline inflation is expected to slide below the double-digit mark by March 2009.

"Inflation is expected to moderate below the double-digit mark by the end of the current fiscal. I am sure of that," Ahluwalia told reporters on the sidelines of a health summit organised by the Ficci.

Inflation for the week ended July 19 touched a 13-year high at 11.98% as compared to 11.89% for the week before.

Ahluwalia's views on inflation are in consonance with Finance Minister P Chidambaram's outlook that inflation will start moderating after six to nine months. It is also in line with the expectations of RBI governor YV Reddy and Prime Minister's Economic Advisory Council chairman C Rangarajan who feel that inflation will ease to around 7-9% by the end of current fiscal.

Ahluwalia said inflation was a short-term challenge and will slow down the pace of the economy's growth to around 8% or marginally less than that in the current fiscal.

He said the softening of crude prices in the international market was a ‘welcome development’, and hoped that the domestic price situation will stabilise in due course.