Inflation will be less than 8%

The prime Minister's Economic Advisory Counsil(EAC) chairman C.Rangarajan on wednesday(Aug 6) said India's economic growth may come down upto 7.5% within a year. While speaking in the "India Financial Inclusion Summit 2008" he told reporters.
The Indian government today(Aug 8) announced that they hope inflation will surely come down to 8-9% in the next three to six months although it has recently broken the psychological 12% level."Tight monetary measures will tame inflation in three to six months," Union Finance Minister P Chidambaram said during a book reading sessionhere.Pointing out that rising global oil and commodities prices had led to the spiralling inflation, he said, "We have no control over international and commodities prices." "What we are trying to do, giventhe price hike, is to moderate aggregate demand by using tight monetary measures, by sacrificing a bit of growth," he said, adding "that was the only way inflation could be tamed".