Briefing reporters Planning Commission Deputy Chairman Montek Singh Ahluwalia said, “I believe food inflation will come down... I believe inflationary pressure will come down over a couple of months.”
Further, Ahluwalia said, “I think no single instrument in a very short-term can impact inflation,” as it involves many different things and its movement should be watched over a period of time. Meanwhile, Moody’s economy.com also doubted the the effectiveness of monetary tools on controlling food inflation. Tighter monetary policy will have limited impact on inflation in the current environment, which is affected largely by supply side factors that are beyond RBI’s control, said Moody’s Economy.com, a division of Moody’s Analytics Inc.