Crisil trimmed their FY12 GDP growth forecast to 7.6% from 7.78% due to the weak global economic situation. However, it raised its inflation target to 9.1% from 8-8.5%.
The September inflation estimate is around 9.2%, said Dharmakirti Joshi, economist at Crisil in an interview to CNBC-TV18. He also indicated that another rate hike from the Reserve Bank of India (RBI) cannot be ruled out as the core inflation is still high in the economy.
Taking about the rationale behind increasing the inflation forecast, he stated, "Even if the year ends with a number close to 7%, we would get an average of around 9.1% for the year."
According to Joshi, inflation would remain a prime concern throughout the year for the country. He mentioned that the inflation has surprised on the upside in the first few months of the year. "Even if we head down in the forth quarter, the average will remain quite high," he added.
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The September inflation estimate is around 9.2%, said Dharmakirti Joshi, economist at Crisil in an interview to CNBC-TV18. He also indicated that another rate hike from the Reserve Bank of India (RBI) cannot be ruled out as the core inflation is still high in the economy.
Taking about the rationale behind increasing the inflation forecast, he stated, "Even if the year ends with a number close to 7%, we would get an average of around 9.1% for the year."
According to Joshi, inflation would remain a prime concern throughout the year for the country. He mentioned that the inflation has surprised on the upside in the first few months of the year. "Even if we head down in the forth quarter, the average will remain quite high," he added.
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