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Inflation to be ‘comfortable’ by December: Montek Singh Ahluwalia

The Reserve Bank of India on Friday raised interest rates earlier than expected, ahead of its July 27 policy review, days after the government freed up fuel prices.

DNA Web Team

Updated : Jul 05, 2010, 11:39 AM IST

Inflation will ease into a comfortable zone by December, Montek Singh Ahluwalia, deputy chairman of the Planning Commission, said on Monday.

The Reserve Bank of India on Friday raised interest rates earlier than expected, ahead of its July 27 policy review, days after the government freed up fuel prices. Analysts expect another 25-basis points hike on July 27, on concerns over inflation hovering above 10%.

The central bank projects headline inflation, which hit 10.16% in May, to fall to 5.5% at end-March.

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