Inflation to drop below seven per cent: Rangarajan

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Mumbai, May 3 (UNI) Inflation is likely to come down to six per cent within three months from the present high level of over 7.5 per cent, while the country's economy is expected to grow at least 8 to 8.5 per cent despite the bearish phase in the global markets, Dr C Rangarajan, chaiman of Prime Minister's Economic Advisory Council, said today.

''Inflation has reached uncomfortable levels and several actions have been taken on the monetary and fiscal sides recently by government. I think in the next three months it (inflation) could come down to six per cent,'' Dr C Rangarajan told newsmen here today on the sidelines of a SME conference.

Dr Rangarajan said while the impact of the fiscal and monetary measures, taken to contain inflation, would take some time to show results, a good procurement and expectation of good monsoon would contribute towards moderating inflaton.

He said the base effect on food price index has also caused the exaggerated inflation figures. Commen man would be able to buy essential commodities at reasonable prices within a few days, he added.


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