November inflation likely at 8.26 pc: IEG

NEW DELHI: Rising prices are expected to continue to haunt the common man as inflation likely to remain above the eight per cent mark for the month of November, says a think tank.

Inflation is likely to be about 8.26 per cent for the month, marginally lower than 8.58 per cent recorded in October, according to the Institute of Economic Growth ( IEG).

The inflation figure for November is slated to be released on December 14.

The IEG projection is higher than that of Chief Economic Advisor Kaushik Basu, who expects inflation to fall to 7.5 per cent in November. It peaked at 11 per cent in April 2010.

According to IEG, inflation would fall below 8 per cent at 7.96 per cent in December and 7.73 per cent for January.

Finance Minister Pranab Mukherjee, meanwhile, expects inflation to fall to about 6 per cent by March end.

High inflation could prompt RBI to tighten monetary policy further when it comes out with its quarterly review on December 16.

Prime Minister's Economic Advisory Council Chairman C Rangarajan has said that inflation behaviour would determine RBI's actions, adding that the current price rise is above the comfort zone.

To tame inflation, RBI had last month increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points each to 6.25 per cent and 5.25 per cent.

It was the sixth time this fiscal that the apex bank had raised key lending and borrowing rates to cool inflationary pressures in the economy.