Inflation to drop in 2-3 months: Montek

"I do not think it matters if inflation reaches double digit mark in one week... but in the next two-three months, the overall inflation will come down as the food prices are declining," Ahluwalia told reporters when he asked whether inflation will reach double-digit figures.

He added that declining food prices would also not allow spreading of food inflation to non-food items.

"I do not think it (spreading of food inflation) will happen as the food prices will further come down," he added.
Food inflation has come down to 16.22 per cent for the week ended March 13 from 16.30 per cent in the previous week. The over all inflation is, however, at 9.89 per cent for the month of February.

Ahluwalia, who was here to attend 'Law Congress', added that the rabi harvesting season will also result into lowering of inflation. "We have enough food stocks in our hands and the coming rabi harvesting season is also expected to be good," he said.
Deputy Chairman said that the country was now aiming at 10 per cent GDP growth in 12th five-year plan. "Prime Minister has told us to look at 10 per cent GDP growth in the 12th five-year plan and we are examining it...though earlier we viewed growth between 9 and 10 per cent," he said.

On the issue of growing subsidies, especially that of the ballooning oil subsidies, Ahluwalia said the government should now accept and implement the Kirit Parikh report on fuel prices to cut down the burgeoning subsidy bill.
"If the world fuel prices do not change or come down, we need to adjust our fuel prices with global rates. Therefore, we have to accept the Kirit Parikh report and implement its recommendations so that our subsidy bill as provided in the budget should also not exceed," he said.

The Kirit Parikh committee was set up by the government to suggest ways to deregulate oil prices. Recently the committee submitted its report which called for complete de-control of the oil price regime and leaving it to the market forces.