Inflation to remain at 6 percent in current fiscal: PM panel

New Delhi, April 23 (IANS) India’s wholesale price-based inflation is expected to be at around 6 percent in the current financial year, providing ample space to the Reserve Bank of India to ease monetary policy, the economic advisory panel to Prime Minister Manmohan Singh said Tuesday.

Inflation based on Wholesale Price Index (WPI) was recorded at 5.96 percent at the end of the financial year 2012-13.

Addressing a press conference here, Chairman of the Prime Minister’s Economic Advisory Council C. Rangarajan said core inflation has declined in the recent months in line with the government’s expectations.

He said primary food inflation is expected to remain at around 8 percent, fuel inflation at around 11 percent and manufactured goods inflation at around 4 percent in the financial year 2013-14.

“Inflation at around 6 percent gives scope for rate cut,” Rangarajan said.

The central bank has been maintaining tight monetary policy for the last three years to contain inflation.

The Reserve Bank of India (RBI) is scheduled to announce its monetary policy May 3.

However, Rangarajan admitted that even at 6 percent, inflation was high and it needed to be brought down further.

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