CMIE predicts 5.5% inflation for FY'09

INFLATION IMPACT Inflation is expected to come down to 5.5 per cent in financial year 2008-09 and kharif crop is likely to play a major role in this regard, says the Centre for Monitoring Indian Economy (CMIE). "We retain our forecast of 5.5 per cent inflation for the year FY'09. We expect inflation to increase further in the next couple of months and start receding from September onwards," CMIE said in its monthly review. Inflation, measured in the wholesale price index (WPI), increased to 11.05 per cent for the week ended June 7.