Mumbai, Feb 22 (PTI) Inflation will average nine per centin FY 11, as compared to 3.6 per cent in the preceding fiscal,a leading economic think-tank said.
"Unseasonal rainfall in October and November 2010 damagedproduction of some crops including onion. In addition, exportsof cotton and sugar have been permitted. Incorporating allthese factors, we estimate that inflation will average nineper cent in 2010-11, as compared to 3.6 per cent in thepreceding fiscal," the Centre for Monitoring Indian Economy(CMIE) said in its latest review of the country''s economy.Between April and December 2010, inflation was 9.4 percent, as compared to 1.7 per cent in the corresponding periodof 2009.
"Major contributors include fruits, milk, eggs-meat-fish,condiments-spices, raw cotton, fuel and power, textiles andbasic metals, alloys and metal products," CMIE said.
The think-tank foresees inflation coming down to 8.1 percent in the fourth-quarter of the current fiscal, from 10.6per cent in the first-quarter and 9.3 per cent in thesecond-quarter.
In the third-quarter ending December 2010, it was 8.3 percent. .