Inflation will moderate, likely to be below 6% in July: CEA K V Subramanian

Subramanian added that the second wave lasted only for 6-8 weeks, and hence its impact on growth will not be as stark as the first wave of the pandemic which was on for 6 months, and led to a 7.3 per cent contraction in the GDP in FY21.

New Delhi: Headline inflation will come down under the 6 per cent mark in July itself but will stay at an elevated level of over 5 per cent for some time, Chief Economic Advisor K V Subramanian said on Thursday. Such an outcome will get the price rise back into the upper-end of the target band given to RBI, he said, adding that consumer price inflation had breached the mark for three consecutive quarters last fiscal because of supply side issues like challenges in movement of goods. "With reasonable probability, I expect this month the (inflation) print to come less than 6 per cent," Subramanian told a conference organised by industry lobby Ficci.