In a presentation to economic advisers in various ministries, Arvind Virmani said the inflation rate would return to "normal levels" in a year's time but did not give any figures.
He said the short-term outlook for inflation would depend on the behaviour of global crude oil prices.
In March, Virmani had said the economy was likely grow between 8 and 9 per cent this fiscal year. Monetary tightening to cool double-digit inflation is expected to moderate growth.
Earlier this month, Prime Minister Manmohan Singh's Economic Advisory Council estimated the economy would grow by 7.7 per cent in the year to the end of March 2009, below a forecast from the central bank of 8.0 per cent.
Finance Minister Palaniappan Chidambaram has said he expects the economy to grow close to 8.0 per cent and most think-tanks expect growth in the 7.0-8.0 per cent range.