New Delhi:Planning Commission Deputy Chairman Montek Singh Ahluwalia
on Wednesday said the fuel price hike will further increase inflation in July, but it will fall below double digits by the end of December. "I think although
there will be an adjustment upward (in inflation) when fuel price hike gets fed
in July numbers. I don't alter my conclusion that at the end of the year it will
be low," said Ahluwalia. "The inflation will be well below double-digit by the
end of this year. The June inflation number seems to be consistent with the sort
of cautious optimism we have been expressing. You will see more decline as time
goes by," he added on the sidelines of an Indo-Oman event. Ahluwalia further said
the high inflation cannot be avoided by not adjusting fuel prices. "This will
result in huge losses to oil marketing companies. You will cover these losses
by hidden subsidies that would generate inflationary pressure," he claimed.
