Inflation expected to soften from mid-Oct: Basu

Chennai: Inflation would continue to hover around 7.5 per cent for another two to three months but is expected to soften from mid-October, Chief Economic Adviser Kaushik Basu said today.

"My expectation on inflation as per wholesale price index is, for another two-three months, it will be the way it is (now)… around 7.5 per cent…," Basu told a seminar here.

Noting that India`s inflation record was "much, much better" against emerging economies, Basu said inflation should go down from September and as per expectations and calculations of the Finance Ministry, it will go below seven per cent from September.

"So you have to live with this high inflation for another two-three months and it should begin to go down from September," he said.

"From the middle of October,for the first time, you should see softening of inflation going down below seven per cent," he told a seminar on `Indian Economy and The Economic Survey`, organised by the Southern India Chamber of Commerce and Industry.