''The inflation is expected to come down to six per cent in three to four months. Thereafter it can come down to 5-5.5 per cent depending upon the monsoon and other sectors,'' Dr Rangarajan told reporters on the sidelines of 'International conference on Asia Tax Forum' here. The central government is under pressure to contain prices ahead of state polls this year and national elections due by next year.
It has cut import duties on edible oil and curbed rice exports along with suspension of futures trading in soybean oil, potatoes, rubber, chana and chickpeas. Steel manufacturers have also cut prices by Rs 4,000 a tonne on flat products to put a leash on spiralling inflation.
Mr Rangarajan also told reporters that the spiralling global oil prices will have an impact on the growth rate but will not 'derail' the growth process. "High oil prices will have its impact. It could slow down growth," he said. The economy is expected to grow 8.0-8.5 percent in the current fiscal, he added.