Amid rising concerns over high inflation, the Prime Minister’s economic advisory panel has said that the rate of price rise might slow down to around 6 per cent in the current fiscal on the back of good farm output.

“I think it (inflation) will be around 6 per cent… probably that is where it will settle down,” Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan said in New Delhi on Monday.

Wholesale price inflation (WPI) in March rose to 8.98 per cent, higher than the Reserve Bank’s projection of 8 per cent and its comfort level of 5-6 per cent.

“I think the inflation will come down in April. What happened in March was quite unexpected… but the food inflation is coming down. The wheat production is very good.

Therefore, I expect food prices to come down further in April and that should help in the overall headline inflation coming down,” Rangarajan said.

RBI Governor D Subbarao had described inflation as an area of major concern at a recent meeting of the IMF-World Bank in Washington.

“Headline inflation has remained firm despite some moderation in food inflation as generalised price pressures have emerged, with rising inputs costs feeding into manufactured products inflation.

The hardening of global commodity prices, particularly oil prices have further accelerated inflation.” the RBI Governor had said.

Rangarajan when asked on the likely impact of rising crude oil prices on inflation, said domestic users have been shielded so far as retail prices for fuels, particularly diesel, have not been adjusted to international crude prices.