Inflation to decline to below 8 per cent in April: Basu

Inflation is expected to decline to below 8 per cent in April, from 8.98 per cent reported in the previous month.

The government's chief economic advisor, Kaushik Basu, says, ''I would expect inflation to be less than 8 per cent in April,'' he told reporters on the sidelines of an Assocham function.

Basu further said the inter ministerial group (IMG) on inflation, constituted by the government to suggest measures for reining in spiralling prices, would meet next month after the RBI conducts its annual monetary policy review on 3 May. 

''We will have an important IMG meeting in early May. We want to look at macro economic demand management,'' he said, adding that RBI governor, D Subbarao, might also attend the meeting.

The IMG had been set up by the government in February, to suggest measures to control spiralling prices, particularly of food articles.

According to economists, the central bank is expected to go for another hike in key policy rates to bring inflation under control which is still ruling above the comfort level.