“I feel we will reach the comfortable level of below 5 per cent sometime during the next fiscal,” Basu told PTI.
He further said tinflation for March is likely to be a little over 7 per cent. There would be a sharp reduction in March though there would not be much relief in February, he added. Finance Minister Pranab Mukherjee had termed the current level of inflation as “uncomfortable.”
This high inflation could prompt RBI to take further monetary tightening measures in its mid-quarterly on March 17. According to Prime Minister's Economic Advisory Council Chairman C Rangarajan, RBI is expected to continue with its monetary tightening policy to fight inflation.