Food inflation is finally seen falling below 10% in the coming months, Planning Commission deputy chairman Montek Singh Ahluwalia said on Thursday.
?I am happy it (food inflation) is coming down. It has to come down even more and it will,? Ahluwalia told reporters. ?I would expect food inflation to be in a single digit. Exactly when that will happen, I am not sure,? he said.
The widening current account deficit is not a cause for concern at this juncture as it can be met through steady capital inflows and comfortable forex reserves, Ahluwalia said. ?It is true current account deficit is widening, but we did expect the current account deficit to widen. Obviously, if you are planning to manage the current account deficit, you must have capital flows,? said Ahluwalia. During April-June, current account deficit stood at $13.7 billion. Ahluwalia said the key issue before the government is quality of capital flowing into the country.