High inflation may ease from May: Economists

Economists fear that India is in for a period of high inflation even though it may start easing from the current level of 7.41% to around 6.4% from mid-May onwards.

"There is a likelihood of inflation declining in about a month's time. But it will still be around the 6.4% mark," Bank of Baroda chief economist Rupa Rege Nitsure said.

The economists peg inflation's yearly average (FY09) at around 5.5%, above the Reserve Bank of India's comfort level of 5% but considerably lower than the present level.

"I see a cool down from May onwards. The government's administrative measures should help pull down inflation by around 0.40%. A cash reserve ratio (CRR) hike by RBI would further help dampen inflation," Enam Securities chief economist Sachichidanand Shukla said.

"If supply-side constraints also show an improvement as expected, inflation could reduce to around 6.25% by mid-June," Shukla said.

Edible oils are already showing signs of easing. Food supplies should improve and with recession gripping several economies in the world, commodity prices too could begin to cool, he said.