"As it stands now, for another 3-4 months inflation will remain high even though it would show a tendency to decline at around 6 per cent. Inflation may reach even 5.5 per cent by end of this fiscal," Council chairman C Rangarajan said.
Pointing out that there is a limit to oil bonds for compensating losses for public sector oil marketing companies, due to rising global crude prices, Rangarajan said some adjustment in retail prices is called for at some particular point.
Describing industrial growth of three per cent in March 2008, as a 'blip', he said industrial production will pick up in subsequent months and economy could expand by around 8 per cent in the current fiscal.
"We still think the overall growth rate during 2008-09 could be around close to 8 per cent. Accordingly, industrial production will be little higher than that," he said.
Inflation will come down: PM
Inflation: The silent killer!