Food inflation will come down to 7%, says Kaushik Basu

Press Trust of India Pune | Updated on March 10, 2011 Published on March 10, 2011

The downward trend in food inflation which has attained single digit now, would continue and could touch seven per cent shortly, the Chief Economic Advisor, Dr Kaushik Basu, said here today.

“Inflation has come down substantially and I expect it to fall quickly in another two months,” he told reporters noting that food inflation figure which was earlier above 10 per cent, had reduced to 9.52 per cent now.

“It is not unexpected. What we had anticipated is happening,” Dr Basu said adding that the November-December (2010) inflation movement was considered temporary.

By the end of fiscal, the inflation figure could be pegged at seven per cent, he said.

Dr Basu was here to attend the convocation ceremony at National Institute of Bank Management (NIBM) where he shared dais with the RBI Governor, Dr D. Subbarao.

Dr Basu also observed that the growth estimate this year at 8.6 per cent would remain “intact”. In his address, Dr Subbarao said translating growth into poverty reduction was important and one of the challenges faced by the banking sector in India was that of “financial inclusion”.

Published on March 10, 2011
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