As per expectations and calculations of the Finance Ministry, inflation will go below 7 per cent from September, Basu said at a seminar here.
"So, you have to live with this high inflation for another two-three months and it should begin to go down from September," he said.
"From the middle of October,for the first time, you should see softening of inflation going down below seven per cent," he told the seminar on 'Indian Economy and The Economic Survey', organised by the Southern India Chamber of Commerce and Industry.
Basu, however, said that the government is taking stock of the situation and looking at "fire-fighting" measures.
Inflation was at 7.55 per cent in May on the back of rising prices of vegetables and petrol.
Amid heightened inflation worries, RBI last month kept key policy rates unchanged to control the price rise, disappointing the industry and retail borrowers who were expecting at least 0.25 per cent rate cut.
The industry is pitching for cut in lending rates, saying high interest rate regime has slowed down the growth.
Basu, however, noted that India's inflation record was "much much better" against other emerging economies. (MORE)
