Prime Minister's Economic Advisory Council, PMEAC, Chairman C Rangarajan today said he expects the Indian economy to grow by 8.5 per cent in Financial Year 2011-2012 on the back of service sector and industry expansion. However, he hinted that agriculture might not be a big contributor in the growth. At the 26th Skoch Summit in Mumbai, Rangarajan said that it is prudent to aim at a growth rate between 9 per cent and 9.5 per cent. In its monetary policy for 2011-12 released earlier, the RBI projected the economy to grow by 8 per cent this fiscal, lower than the government's original forecast of 9 per cent. On inflation, Rangarajan said we should not let that happen in the years of high growth. He said, we must re-anchor the inflationary expectations to the 4-5 per cent comfort zone. On food inflation, he said, the last few months have shown a declining trend in vegetable prices and it is expected that inflation will come down in the coming months, even though it may remain at a high level for some time.