Inflation will be brought under six percent: Rangarajan

May 3rd, 2008 - 9:56 pm ICT by admin  

Mumbai, May 3 (IANS) The soaring inflation that has badly hit the country’s economy will be brought under under six percent within the next three months, prime minister’s economic advisory council chairman C. Rangarajan said Saturday. Chatting with reporters on the sidelines of a small and medium enterprise conference here, he said: “Inflation has reached an uncomfortable level and several actions have been taken on the monetary front to arrest the rising inflation. I think in the next three months, inflation could come down to six percent.”

Inflation touched 7.57 percent for the week ended April 19, registering a 42-month high. It had reached 7.68 percent in November 2004.

Rangarajan expressed confidence that despite the global slowdown, India’s economy would grow at 8 to 8.5 percent as predicted by the Reserve Bank of India (RBI) while announcing its recent monetary policy.

He added that there would be a gap before the monetary policy produced the desired effect.

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