ET Poll sees inflation at 2.42%

NEW DELHI: Inflation for the week ended February 28 is seen at 2.42% as per the poll consensus in an ET poll conducted among 8 economists. Most of them are expecting inflation to enter sub 2% levels in next week. Inflation was at 3.03% in the week before and at 6.21% in corresponding week last year. Inflation for the week will be released by Thursday noon. Subadha Rao, Chief Economist at Yes Bank said, "inflation will be in sub 2% segment next week due to the high base effect. The corresponding period last year has seen a spike in inflation in inflation."

India cut factory gate duty and service tax on February 24 in an attempt boost demand and stimulate growth in flagging economy. This is also expected to push down inflation. The pace of fall in inflation has surprised even the central bank. They were expecting inflation to drop below 3% only by March end. But economists are expecting inflation to enter sub-zero levels by March end. Saugata Bhattacharya, economist of Yes Bank pointed out that it could enter subzero levels in next three weeks.

Country's Chief Statistician, Pronab Sen was the first economist who predicted that inflation will be entering subzero levels by March end. The high base effect is expected to push inflation into negative territory by the week ending March 21 if there is no sudden spurt in prices of food articles.