"It is true that we were hoping that this (moderation in inflation) will happen earlier, to that extent our credibility becomes a question," he told Karan Thapar in a interview for CNN-IBN's TV programme 'Devil's Advocate' when asked why government's repeated projections on inflation proved false.
"You should recognise that short-term forecast is subject to error," he said. He, however, asserted inflation would moderate to 7-7.5 per cent by March, 2012.
Headline inflation has remained over nine per cent for several months and was 9.73 per cent in October.
The food inflation stood at 10.63 per cent for the week ended November 5. Inflation has remained stubbornly high despite repeated assurances by several government functionaries that it would moderate.
Responding to criticism of India Inc that there was a policy paralysis in the government, Ahluwalia said, "Industry has been a lot more focused on decisions that are holding up infrastructure projects, and not the (financial) reforms".
The government, he said, "is keen to push (reforms) ahead but needs to develop political consensus and if the measures like GST, DTC and other reforms are delayed, that does not mean that they wound not happen."