'Inflation to moderate, economy to grow at 8pc'

New Delhi, May 6: Planning Commission Deputy Chairman Montek Singh Ahluwalia today said inflation, which has surged to three-and-a-half-year high at 7.57 per cent, will moderate soon and expressed the hope that the economy will grow at eight per cent in the current fiscal.

''I do hope that in the next few weeks inflation will moderate.'' He said on the sidelines of a conference here. The economist further said the country is likely to grow at eight per cent during the current fiscal, compared to 8.7 per cent growth witnessed in the previous fiscal. The RBI annual credit policy also projected the economy to grow between 8-8.5 per cent during FY09.

On banning futures trading of essential commodities to tame inflation, Mr Ahluwalia said the expert committee believes that such trading does not increase inflation.

UNI