Rangarajan sees March inflation at 7.5%

Rangarajan sees March inflation at 7.5%

New Delhi: India’s headline inflation will ease to 7.5% in March, C. Rangarajan, the top economic adviser to Prime Minister Manmohan Singh, said on Friday, a projection in line with official targets.

Wholesale price inflation, the most widely watched gauge of prices in India, unexpectedly quickened to 8.31% in February.

Finance minister Pranab Mukherjee expects it to be at around 7% in March, while the Reserve Bank of India’s (RBI) target is 8%.

India’s monetary policy will continue to be tight, Rangarajan said.

The RBI has raised interest rates eight times in the last 12 months as it tries to curb high inflation.

The RBI last week raised the repo rate, its main lending rate, by 25 basis points to 6.75%, and raised the reverse repo rate, or borrowing rate, to 5.75%.