November 30, 2010 7:03 PM

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Prices may come down in coming months

Food prices could come down in the coming months. Chairman of Prime Minister's Economic Advisory Council Rangarajan said, inflation is also likely to come down between 5.5 to Six per cent by March 2011. It was from 8.62 per cent in September this year. Admitting that food prices are still at high levels, he said the Reserve Bank's decision to tighten monetary policy further will depend on inflation behaviour in the month of December. To tame inflation, RBI had earlier this month increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25 per cent and 5.25 per cent, respectively.

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