New Delhi: Indian food prices will cool off in one to two months and inflation will turn around, a newspaper reported on Wednesday quoting the Finance Ministry`s Chief Economic Advisor Kaushik Basu.
"I am confident that inflation will turn around. So hopefully we`ll get around without needing to tamper with the rates," the report said quoting Basu.
The Reserve Bank of India (RBI) will hold its quarterly monetary policy review on January 29 and is widely expected to increase the cash reserve ratio (CRR) requirements for banks, but economists are divided on when it will raise interest rates.
CRR is the level of cash that banks must keep in deposit with the central bank.
Food prices in India rose near 20 percent in December from a year earlier, their highest in 11 years.