Inflation to moderate at 5.00-5.5 pc: Economists

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Mumbai, Jun 11 (UNI) Inflation rate is expected to get moderated at 5.00-5.5 per cent by the end of the current fiscal, even though the Rupee might continue to appreciate against the US currecy, according to economists.

Following the monetary and fiscal measures by the government, the food items and non-ferrous metals' prices have started coming down and there is not much liquidity overhung in the system, which can be considered as an indication of moderating inflation expectation, Tata Services Limited Economic Advisor Dr Siddhart Roy told reporters at a conference on ''impact of inflation and exchange rate trends on business and industry'' organised by Maharashtra Economic Development Council, here today.

Supporting similar view, Aditya Birla Group Chief Economist Dr Ajit Ranade said that in the later part of this fiscal, the inflation rate might come down, however, reported fiscal deficit is likely to remain high near 3.00-3.5 per cent and rupee would appreciate in the long term.

However, global crude price are stuck in bouts of volatility and the trade deficit is likely to remain high that might create a pressure, but it would be for short term, he said.

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