Talebearer

{mosimage} Inflation tamed?
The government is still monitoring inflation levels closely. It now believes, though, that the worst is over. Says a senior bureaucrat: “Crude prices have dipped significantly and we expect commodities prices to ease further over the next few months. Inflation should be back in single digits by March next year.” A relief for the government on the eve of general elections.

{mosimage} Growth story on track?
Despite the turmoil in the global economy, senior government officials remain optimistic that the Indian economy will expand by around 8 per cent in 2008-09. They believe the Indian growth story is driven by domestic consumption, which is unlikely to be severely impacted. Even exports, they point out, have been resilient. Says a bureaucrat: “The rupee depreciation is helping exports. We should be able to weather the storm.”

—Rishi Joshi