The Prime Minister's economic advisory panel has said that the rate of price rise might slow down to around 6 per cent in the current fiscal on the back of good farm output. The Chairman of the panel C Rangarajan said in New Delhi that the inflation will come down in April and that should help in reduction of the overall headline inflation. He said, what happened in March was quite unexpected, but the food inflation is coming down and the wheat production is very good. Wholesale price inflation in March rose to 8.98 per cent, higher than the Reserve Bank's projection of 8 per cent. When asked on the likely impact of rising crude oil prices on inflation, Rangarajan said, domestic users have been shielded so far as retail prices for fuels, particularly diesel, have not been adjusted to international crude prices. In reply to a question whether the Greece debt crisis could hit foreign capital flows into India, he said that may not have a direct bearing on the inflows.
News On AIR | April 19, 2011 5:19 PM