"I do hope it will stabilize after a good crop prospect which is likely to happen during the Kharif season, and, from, after the crop season is over, monsoon is over, the moderating influence on the price front will be felt," said Mukherjee, after his meeting with regional rural bank chiefs here.
The prime minister's Economic Advisory Council had said inflation would be at 7-8 percent by the year-end, compared with 10.55 percent in June.
New Delhi puts high food prices as the cause and argues normal monsoon rains would cool inflation, while the Reserve Bank of India (RBI) says demand-side factors will continue to keep up pressure on inflation.
Inflation has been at over 10 per cent for the last five consecutive months till June.
In response the RBI is widely expected to raise rates by 25 basis points for the fourth time since March when it reviews policy on Tuesday and many observers see the main lending rate rising to 6-6.25 percent by end-December from 5.50 percent.