Finance Minister P Chidambaram today said the inflation rate will come down in the next 3-6 months with the tight monetary measures taken by the Reserve Bank of India. The country's rate of inflation crossed the 12 per cent mark on Thursday and the wholesale price index stood at 12.01 per cent.
"We have seen four years of good growth and this year is a difficult year due to things beyond our control. The rising crude oil prices in the international market has resulted in the rise in inflation. The internationally traded commodity prices have gone up over the last one year, on which we have no control," he said.
"What we are trying to do is, given the price effect we are trying to moderate aggregate demand by using tight monetary measures by sacrificing a bit of growth. That is the only way in which inflation can be tamed," he said addressing a discussion organised here today in connection with the launch of his book, "A view from the outside".
When the world economy slows down in 2008-09 and aggregate demand is contained, crude oil and commodity prices will also moderate, he said.
