If you are worried over food and vegetable prices, here is good news.
The food inflation is coming down due to good monsoon and it could ease further in the next three months, according to Dr C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister.
Speaking to newspersons after delivering the Foundation Day lecture at the Institute for Development and Research in Banking Technology here on Monday, Mr Rangarajan said inflation could come down to 7 per cent by March 2012. The improvement on the supply-side was leading to moderation of food and vegetable prices, he said.
Last year, the vegetable prices had gone up by 60 per cent but this has not been the case this year. “They are moderating now,'' the economist said.
Rupee Depreciation
On the impact of rupee depreciation on economy in general and inflation in particular, he said: “Any depreciation impacts the import prices like commodities such as oil. But the ultimate impact will also depend on dollar price of these commodities,'' he said.
The international economic growth and behaviour of international commodity prices are the other factors that might influence inflationary tendencies in India.
It was difficult to say the exact impact of this development on inflation as yet, he added.
The food inflation was at 9.01 per cent as on last week, according to Government data.