Government today forecast 5 to 6 percent inflation by December this year. The Cabinet secretary K.M. Chandrasekhar told reporters in New Delhi with good rains this monsoon will bring food inflation under control.He said that there is a problem of demand-supply mismatch of about 6 million tones and that is the reason their prices have gone up. Elaborating on the measures needed to contain inflation, which he said was due to low base effect, Chandrasekhar said If central bank found excess liquidity in the system, then it will have to take monetary action. He said that economic growth will be 8.5 percent in the current fiscal. He said that government will aim at high growth of 10% and moderate inflation in the coming years. He expressed confidence that fiscal deficit will be below targeted 5.5 percent of GDP this financial year.
News On AIR | July 20, 2010 7:56 PM
Centre forecast 5-6 per cent inflation by December<br/>