Montek Expects Inflation To Come Down

India''s top policy makers say inflation rate could fall substantially in the next two months as the impact of fiscal and monetary measures to tame inflation kicks in. Policy makers also caution that the government can''t be in an over reactive mode and the price trends in the next 2-3 weeks will give a definitive indicator. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said that there is nothing alarming and inflation will fall in the next 60 days. Going by last week''s data and taking into account the gestation effect of all measures already taken, Montek says the most worrying phase on inflation may have passed. ''''I am hopeful that reduction in duties will lead to significant imports and thus curbing price rise, which will be evident in some weeks. Data on food grain production too suggests there will be a softening of prices in this area and the impact of monetary measures will roll out in some months,'''' said Ahluwalia.