‘Inflationary pressure to stay’
New Delhi: The recent duty cuts by India can have some impact on softening prices after a couple of weeks, Asian Development Bank said on Wednesday even as it expected inflationary pressure to persist for a few more months. In its Asia Development Outlook, released on Wednesday, ADB expected inflation to fall moderately to 4.4% this fiscal from 4.5% in 2007-08, but said it is likely to rise again to 5% next fiscal. “Inflation is the biggest worry for India at the moment. In next 1-2 months inflationary pressure will remain, it will come down as US slows down further, at least for some of the commodities like fuels, metals,” Narhari Rao, principal economist with ADB’s India resident mission, said. He also added the recent duty cuts announced by the government could have some impact on containing inflation after 2-3 weeks unlike RBI’s monetary policy which has a lag effect. PTI