Published on Sat, Mar 27, 2010 at 11:02 | Source : Reuters
Updated at Mon, Mar 29, 2010 at 10:56
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Inflation seen peaking in March: Pronab Sen
India's headline inflation should peak in March with demand-side pressures likely having a short-term impact on prices, the central chief statistician said on Friday.
India's headline inflation should peak in March with demand-side pressures likely having a short-term impact on prices, the central chief statistician said on Friday.
The Reserve Bank of India (RBI) unexpectedly raised key rates last week to help tame inflation, which is at close to 10%, and warned of pressure from rising demand in the rebounding economy.
Pronab Sen told reporters that investments which had been deferred in the wake of the global financial crisis would pick up as Asia's third largest economy expands.
"You are not starting from zero, (so) these investments will come onto production much faster than the historical average," he said.
He added that government data suggested investments have revived since December.
On Thursday, a document from the country's top policy panel said India should aim for an average 5% inflation and this was a target "quite within the realm of possibilities".
The economy is expected to grow 7.2% in the current fiscal year and 8.5% in the next.
