Inflation seen to moderate

The Economic Survey has projected that, barring unexpected shocks, headline inflation would ease to 6.5-7 per cent by the end of this fiscal and moderate further in the coming months although spiralling global crude oil prices continue to pose a challenge. The Survey expects moderation in inflation to continue during the course of 2012-13 on account of tightening of monetary policy by the Reserve Bank of India and other measures. The Survey said the gap between wholesale price index and consumer price index inflation had significantly narrowed due to drastic fall in food inflation.