Inflation may moderate by March-end: Rangarajan

The high rate of inflation, particularly of food and primary articles, may moderate by the end of this month, Prime Minister's Economic Advisory Council Chairman C Rangarajan said here today.

Although the high food prices is due to supply-side constraints, the comforting factor is that there is enough foodgrain available with the government, the former RBI governor noted.

Stating that there are indications that Rabi (winter) crops would be good, he said release of more food items through the public distribution system would have a sobering impact on food prices.

To a query, Rangarajan said there is no clear evidence to show that futures trading in agri commodities is contributing to the price rise.

Commenting on the GDP growth, he said during the next fiscal, GDP is expected to grow between 8 per cent and 9 per cent. He also expressed the hope that trade and capital flows in the next financial year will improve.