Chief Economic Adviser V. Anantha Nageswaran on Friday said inflation is peaking and will moderate amid the fall in oil prices and with the onset of monsoon. Participating in the 186th annual general meeting of The Madras Chamber of Commerce and Industry (MCCI) in Chennai, he pointed out that the oil prices have come down in the last three weeks. Monsoon is picking up after a slow start and global commodity prices are easing.
Mr. Nageswaran said the rate hikes by the Reserve Bank of India has been mild when compared to other Central banks. The inflation rate in India at 7% is far better than other countries which have seen 8-10% of inflation. With inflation easing, there might not be a need for further rate hikes by the RBI. The services sector has been doing well, especially in segments, like tourism and hospitality. And private sector has been picking up.
