Inflation is expected to remain high until end-December and is impacting private investment, while lingering concerns over the euro zone sovereign debt woes are clouding the outlook for its exports, the finance minister said on Wednesday.
Annual headline inflation accelerated to 9.44 per cent in June, driven by higher prices of manufactured goods and fuel, adding pressure on the Reserve Bank to raise rates next week despite signs of slowing growth in Asia's third-largest economy.
"Headline WPI monthly inflation will likely remain relatively sticky and persistently high between August-December 2011 and start to fall thereafter," Pranab Mukherjee said in a statement issued to a select group of newspaper reporters, seen by Reuters.
The inflation rate is falling substantially.Today's figure has witnessed a good drop in inflation from 8.31% to 7.58% which is a good news for common people.It has managed to fall drastically over the corresponding one year ago figures.
