“My expectation is inflation will remain choppy and difficult till about December", he said. He added that inflation would not come down to comfortable levels of five to six percent for atleast another eight months.
Basu, who is India"s chief economic advisor claimed that India doesn"t have a clear answer on how to tackle inflation. "We are experimenting with different policies, but the situation has not gone out of control", he said.
He said even though the RBI and the finance ministry defer on the means to control inflation, it is much more damaging to have a pretense of a clear policy than being open and experimenting with various policies.