New Delhi: Although inflation showed some downfall in July, it is likely to go double digit again in August. Keeping in view the present scenario, possibility of fall in interest rates seems to be less.

Even the government is in doldrums regarding surging prices. Finance Minister Pranab Mukherjee has given assurance that the Centre and Reserve Bank of India (RBI) would check inflation soon whereas Chief Economic Advisor Kaushik Basu has rebutted it saying that it could again shoot up.

Deputy Chairman of the Planning Commission Montek Singh Ahluwalia also expressed uncertainty about the status of inflation in coming months.
The data shows that inflation rate in July 2011 went down. It was only the retail price of onion which rose 27 times more in July 2011.

The same trend has been registered in the manufacturing sector also where prices remained low in comparison of last year. Despite this, RBI has no plan in cutting the interest rates, according to the experts.

The government has expressed hopes that good monsoon can have the positive results over inflation.

Industries have also expressed satisfaction over the downfall in retail prices in the present month, but it has expressed the need to pay attention to the supply.

Confederation of Indian Industry Director General Chandrajit Banerjee has also given recommendation of immediate reduction in interest rates. Contrary to this, several experts are of the argument that the RBI can go for another hike in interest rate in September 2011.

(JPN/Bureau)