Planning Commission projects inflation at 6% by March ’09

Inflation figures of the government agencies are in for a big dose of downward correction as commodity prices come off their highs. First off the block will be the Planning Commission. The Commission has projected a 6% rate of wholesale price index-based inflation by March 2009, incidentally just about the time the elections to the Lok Sabha are scheduled.The projection is a full 100 basis point lower than the Reserve Bank’s estimate made in its first quarter review in July. These figures are up for review in the mid-season credit policy to be released on Friday by the RBI. “The month-on-month inflation figure has declined, though year-on-year is still quite high. Our internal assessment puts the figure at around 6% by the end of the fiscal,” a top official of the Commission told .After the Planning Commission and RBI, other government agencies will also release their revised estimates soon. Finance minister P Chidambaram will talk to the economic editors at the end of this week while the Prime Minister’s Economic Advisory Council will issue its revised estimate in January. The Council had projected 8-9% rate in March for inflation in its Economic Outlook for 20089.