"There is a lot of uncertainity in inflation rates in the coming two quarters..But we will have a clear downward trend in October-December this year," Chief Economic Advisor to the finance ministry, Arvind Virmani, said at a seminar here today.
Virmani said the monetary and fiscal measures taken by the Government and Reserve Bank would begin to impact inflation with a lagged effect while the positive monsoon outlook is a positive signal.
In the Indian context, inflation is clearly an important issue and the country's policy makers are constantly reviewing the matter to bring in favourable inflationary expectations, he said.
"The central bank should look at the inflationary expectations which is more important for the economy...They have been doing it from time to time," Virmani said.
Headline inflation touched a seven year high of 8.74 per cent and could touch double-digits in the coming weeks as the data is yet to factor in the recent fule price hike effected by the Government.
Oil prices globally are now around the $134 per barrel mark.
