PMEAC to review economy in mid-Feb; may up inflation forecast

The Prime Minister's Economic Advisory Panel is likely to revise upwards inflation forecast for the end of this fiscal to 7 percent when it reviews the country's macro economic situation in mid-February.

New Delhi: The Prime Minister's Economic Advisory Panel is likely to revise upwards inflation forecast for the end of this fiscal to 7 percent when it reviews the country's macro economic situation in mid-February.
    
"The PMEAC would review the macro economic situation in Mid-February and is likely to revise upwards its fiscal-end inflation forecast from 6.5 percent to about 7 percent," an official said.
     
While releasing the economic outlook for the current fiscal in July last year, the PMEAC had estimated inflation will come down to 6.5 percent by the end of 2010-11.
     
However, PMEAC chairman C Rangarajan later said that inflation was likely to come down to 5.5 percent by fiscal-end, which was subsequently revised to six percent and 6.5 percent, respectively.
     
More recently, he put the March-end inflation estimate at 7 percent on "higher-than-expected" wholesale price rise.
     
"March-end we had originally thought, it would be around 6.5 percent, but given the current trend, it could be anywhere between 6.5 percent and seven percent," Rangarajan had said.
     
Besides, in its quarterly monetary policy on January 24, the RBI has also raised its fiscal-end inflation forecast to 7 percent from the earlier estimate of 5.5 percent.
     
The overall inflation for December, measured on the basis of wholesale prices, increased to 8.43 percent in December, from 7.48 percent in November. The rise in inflation is mainly due to increase in food prices.
    
Snapping the downward trend of two consecutive weeks, food inflation inched up marginally to 15.57 percent for the period ended January 15, on account of escalating vegetable prices, particularly onions.
    
Food inflation for the week ended January 8, was recorded at 15.52 percent.

PTI

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