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New Delhi March 16 The Union Finance Minister, Mr P. Chidambaram, on Friday said that he expected the average inflation for 2006-07 to be 5.4 per cent. This would be within the 5-5.5 per cent range projected by the RBI for 2006-07.

Mr Chidambaram assured the Lok Sabha that the monetary steps taken by the RBI will temper core inflation over a period of time.

However, Mr Chidambaram's assurance on inflation came on a day when the wholesale price index-based inflation increased to 6.46 per cent for the week ended March 3 as compared to 6.10 per cent in the previous week.

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