Inflation to dip in 3 to 4 mths: Economists

Unperturbed by the 45-month high 8.1 per cent inflation, economists are confident that it would come down to six to 6.5%.

Unperturbed by the 45-month high 8.1 per cent inflation, economists are confident that it would come down to six to 6.5 per cent in three to four months period, bringing relief to the common man.

Inflation is expected to come down to reasonable level by September-October. The downward trend will be seen in the next two to three weeks period, Economist Intelligence Unit Director (Research) Manoj Vohra said.

Inflation will not sustain at eight per cent, but stabilise at six to 6.5 per cent in the coming weeks, Vohra said.

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The government has done reasonably good job to curb inflation and it will show positive results, Vohra said.

Economists also opined that the inflation may start easing with the onset of monsoon in the country.

Inflation will see downward trend with the agri-commodities prices starts falling following onset of monsoon, Multi-Commodity Exchange Chief Economist V Shunmugam said.

Foreign lender, HSBC’s India head, Naina Lal Kidwai, had said that the high inflation is likely to moderate in the short term, given good monsoon expectations and owing to the fiscal and monetary measures adopted by the policy makers.

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“The inflation is likely to ease in short-term as monsoon expectations are good. Also, the measures taken in the monetary and fiscal sides might take some time to show results,” Kidwai said.

Inflation will come down to around six per cent, Shunmugam said.