Inflation may ease to 6.5 in December: Rangarajan

Wholesale price-based inflation WPI accelerated to 14-month high of 7.52 per cent in November,while retail inflation quickened to eight-month high of 11.24 per cent during the month.

Going forward,Rangarajan said,the declining trend in inflation will continue and WPI may ease to 6.5 per cent by March-end.

The RBI has estimated WPI to be around 6.5 per cent by March end. That is the number we are looking at. We will see a decline in December and perhaps it will continue, he said.

Quoting an econometric study,the former RBI governor said the threshold inflation level is around six per cent,but there is a need to look at the slightly lower as the level is much higher than what many other countries in the world8230; advanced countries treat as the acceptable level of inflation.