Finance Secretary Ashok Chawla today said that inflation will fall to around 6.5 per cent by March-end. He observed that six months ago it may have been said that inflation will drop to 5.5 or 6 per cent by March end, but inflation is always a dynamic process.

The Finance Secretary’s remarks come as food items lifted overall inflation, measured on the basis of wholesale prices, to 8.43 per cent in December, from 7.48 per cent in November.

The government, recently, unveiled measures to check spiralling prices by deciding to continue ban on exports of edible oils, pulses and non-basmati rice and asked states to waive local taxes on essential commodities.

The wholesale price rise in December has also prompted the Prime Minister’s Economic Panel to revise upward the March-end inflation forecast to 7 per cent, from 6.5 per cent estimated earlier.