Inflation will ease to 5-6% in FY '12: C Rangarajan
'We do not believe a high growth rate requires high inflation,' the chairman of the prime minister's economic advisory council said, adding that inflation has to be re-anchored to the comfort zone of 4 to 5%.
The government expects headline inflation to ease to around 5-6A% in the financial year starting on April 1, the chairman of the prime minister's economic advisory council, C Rangarajan said on Wednesday. "We do not believe a high growth rate requires high inflation," he said during a speech. "Inflation has to be re-anchored to the comfort zone of 4 to 5%," he added. He also said India's current account deficit would be below 3% in the current financial year, which ends on March 31. The inflation rate has remained stubbornly high in the past year and prompted a series of rate hikes by the central bank.The Wholesale Price Index (WPI) rose more than 8% at the last reading in January.