Inflation likely at 6.5% this fiscal end: Finance ministry

The finance ministry today said inflation will come down to around 6.5% by March-end, from 8.43% in December.

"It will be around 6.5% by March end," finance secretary Ashok Chawla told reporters in Delhi.

The finance secretary's remarks came even as expensive food items jacked up overall inflation, measured on the basis of wholesale prices, to 8.43% in December from 7.48% in November.

Also, the government's move to raise petrol prices is expected to fuel inflation.

"Six months ago we may have said inflation will be 5.5-6% (by March end). Since it is always a dynamic process, today nobody is saying because the trend has not really gone down," Chawla said.

He, however, added that inflation is coming down.

The wholesale price rise in December has also prompted the prime minister's economic panel to further revise upward the March-end inflation forecast to up to 7% from 6.5% estimated earlier.

Food inflation has also remained high through December, touching the year high level of 18.32%. It finally eased somewhat for the week ended January 1 to 16.91%.

The government, recently, unveiled measures to check spiralling prices by deciding to continue ban on exports of edible oils, pulses and non-basmati rice and asked states to waive local taxes on essential commodities.