July 5 (Reuters) – India’s headline inflation will ease to around 6 percent by December, Finance Secretary Ashok Chawla said on Monday.
India’s central bank on Friday raised interest rates earlier than expected, ahead of its July 27 policy review, days after the government freed up fuel prices. Analysts expect another 25-basis points hike on July 27, on concerns over inflation hovering above 10 percent.
The central bank projects headline inflation INWPI=ECI, which hit 10.16 percent in May, to fall to 5.5 percent at end-March 2011.
(Reporting by C.J. Kuncheria)