New Delhi, Aug 7: Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday, Aug 7 said the inflation rate, which is ticking towards 12 per cent, is likely to fall below double-digit by the end of March 2009. Dr Ahluwalia described the softening of global crude oil prices as a ''welcome development''.
Dr Ahluwalia is a key person in the policy making of the government. There has not been a complete passthrough to the consumer of the high global crude prices, with the hit being absorbed by the Oil Marketing Companies (OMCs). The softening of the global crude prices will help bring down the inflation rate, the point was affirmed by Dr Ahluwalia.
The RBI, in its recent review of the credit policy, had pegged inflation at seven per cent in the current fiscal.