Inflation to decline to 5-6 pc by December: government

Buoyed by the prospects of a good monsoon, the governmenttoday said inflation would halve to 5-6 per cent by the end of December, accompanied by economic growth of 8.5 per cent during the current financial year.

Cabinet secretary K M Chandrasekhar told reporters in New Delhi,  that with a good monsoon and good crop, inflation will certainly fall.

"Experts are saying that inflation will be 5-6 per cent by year end. I don't have any reason to disbelieve it," Chandrasekhar said.

Overall annual inflation, which is in double-digit for last several months, was 10.55 per cent in June.

Chandrasekhar said that as far as food inflation was concerned, prices have been maintained at stable levels over the last three - four months and that price had more or less stabilised.

On growth prospects for the current financial year, he said, "We are estimating something like 8.5 per cent growth,"  adding that India could even achieve 10 per cent growth in the near future,while responding to a query on the IMF's projection of 9.5 per cent.