Inflation likely to touch 5.5%

NEW DELHI: Inflation is likely to touch 5.5 per cent for the week ended June 24, according to experts.

The wholesale price based inflation may touch 5.5 per cent, the upper limit of the Reserve Bank's projection of 5-5.5 per cent inflation for this fiscal, they opine.

"Inflation is likely to be 5.4-5.5 per cent," credit rating agency ICRA's P K Choudhury said.

Echoing Choudhury, Sunita Gupta of PNB Gilts said inflation will be around 5.5 per cent as the base is low.

Inflation has become a highly debated issue in the country with sharp increase in prices of essential commodites, besides the recent hike in petrol and diesel prices.

While Opposition BJP and Left parties, which support the UPA government from outside, have blamed the government for the price rise, the ruling Congress party has passed the buck to the previous NDA government for high inflation.

As inflation surged to 5.44 per cent during the week ended June 17, the Government promised that it will take action to contain prices.

While the Centre has eased import norms for wheat, pulse and sugar, from monetary side, RBI has hiked the short-term interest rates by 0.25 per cent last month.