Lahiri: Calm

New Delhi, June 25 (PTI): In an effort to ease fears over spiralling prices, the government today said inflation has gone up to 5.89 per cent due to seasonal factors and that essential items would cost less in the near future.

The government also expects that the rising rate of inflation would not put pressure on the interest rates. “We are fully committed to price stability. Hardening of inflation was due to seasonal fluctuations and I don’t think it will remain high. The inflation will soften in coming months,” said Ashok Lahiri, chief economic adviser to the finance minister. Even in January, inflation went up to 6 per cent, but eased later, he added.

Lahiri said there are two types of inflation — one is due to one-off effect because of seasonal factors, and the other is a continuous momentum in prices, which is worrisome.

“I don’t think there is any momentum in prices and the present rise in the rate of inflation is due to the one-off effect in the face of soaring prices of fuel in the international market, which is seasonal,” he said.