Saturday, June 28, 2008

Last Quarter By Inflation Likely To Ease - June 28,2008

Economists said the rise in the most keenly watched cost of living index may continue to be in double-digit for some more time, but would ease to single digit levels by March next year. This, however, will hinge on how crude oil prices, which now rules above $140 a barrel, move, they added.

“We could expect double-digit inflation for most of calendar year 2008 unless there is a dramatic change in the international prices of oil and other commodities like steel.

Domestic inflation is also a function of global commodity prices. Inflation is likely to ease by the last quarter of the fiscal. My forecast for the economy is a 7.8% growth for the current fiscal,” said leading economist Saumitra Chaudhuri.

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