NEW DELHI: The government expects headline inflation to ease to around 5-6 per cent in the financial year starting on April 1, the chairman of the prime minister's economic advisory council, C. Rangarajan said on Wednesday.
"We do not believe a high growth rate requires high inflation," he said during a speech. "Inflation has to be re-anchored to the comfort zone of 4 to 5 per cent," he added.
He also said India's current account deficit would be below 3 per cent in the current financial year, which ends on March 31.
The inflation rate has remained stubbornly high in the past year and prompted a series of rate hikes by the central bank. The Wholesale Price Index (WPI) rose more than 8 per cent at the last reading in January.
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