"Inflation has reached uncomfortable levels and several actions have been taken on the monetary and fiscal sides. I think in the next three months it (inflation) could come down to 6%," Rangarajan told reporters on the sidelines of an SME conference here today.
The wholesale price index-based inflation has risen to 42-month high of 7.57% for the week ended April 19.
Rangarajan said while the impact of the fiscal and monetary measures taken to contain inflation would take some time to show results, a good procurement and reasonably good monsoon expectation would also contribute towards easing inflation.
"I do think that apart from the impact of fiscal and monetary measures, procurement has been good and the monsoons are expected to be reasonably good," Rangarajan said, adding that this too would help in moderating inflation.
He said the base effect on food price index has also caused the exaggerated inflation figure.
On the impact of global economic downturn, he said, despite the slump India's economy is expected to grow at 8-8.5%.
However, disturbances in domestic and international markets may have slight effect on growth.
"I think the economy will grow at 8-8.5%. In fact, the Economic Advisory Council has estimated the growth at 8.5% three to four months back...I think it is achievable," he said.
