Inflation likely to fall to 10 % by 2008 end

Inflation is likely to decline to 10 per cent by December 2008 end as a fallout of the declining global crude prices, PM Economic Advisory Committee's former chief C Rangarajan said on Wednesday.

"It is also hoped that oil prices internationally will stabilise at a lower level and under these circumstances, we can hope to see the inflation coming down to around 10 per cent by the end of this December", he said at the Annual General Meeting of the Southern India Chamber of Commerce and Industry here.

"Thereafter, because of the base effect, inflation could come down further and may hover around 8-9 per cent by March 2009," he said.

Rangarajan said the Economic Advisory Council had projected a growth of 7.7 per cent for 2008-09.

He said given the domestic and international factors, it might be reasonable to expect the growth rate to remain around this figure.

"This will be as a consequence of a moderation in the growth rates of agriculture, manufacturing and services as compared to the previous years," he said.