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Inflation likely to ease from Jan-March: Subbarao

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:41 hrs

pThe Reserve Bank of India RBI expects headline inflation to ease from the fourth quarter of this financial year its governor D Subbarao saidpp&ldquoInflation is still high It has come down from its peak but at 75 per cent it is still high We are expecting that inflation will trend down from the fourth quarter of the financial year starting January&rdquo Subbarao told reporters after the central bank&rsquos board meeting here on Thursdaypp&ldquoAs we go into our mid-quarter policy on December 18 and our quarterly policy on January 29 we will take into account the growth-inflation trajectory and calibrate our monetary policy accordingly&rdquo he added The central bank has projected 75 per cent inflation for March endppIn the October review of monetary policy Subbarao said there was a &ldquoreasonable likelihood&rdquo of it easing in the January-March quarterppIndia&rsquos headline inflation has remained stubbornly high forcing the banking regulator to keep its policy rate unchanged since April It had raised the interest rate 13 times between March 2010 and October 2011 RBI reduced the repo rate by 50 bps in April this year However with economic growth slowing pressure on RBI to cut rates has mounted in recent months from the government as well as industry bodiesppWholesale price index-based inflation stood at 745 per cent in October 2012 against 987 per cent in the corresponding month of the previous year The annual rate of inflation was 781 per cent in Septemberp

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