Inflation is set to come down below 7 per cent in September this year, Dr Kaushik Basu, Chief Economic Advisor to the Ministry of Finance, said here on Saturday.

The figures will be reflected in the October data released by the Ministry, he added.

According to Mr Basu, the wholesale price index is set to come down in September from the present 7.5 per cent.

“You will see the impact of these in the October figures. Inflation is now at 7.5 per cent. However, in another two to three months there will be some softening,” he said at an interactive session organised by the Bharat Chamber of Commerce.

Rupee volatility

Dr Basu said that the rupee is likely to stabilise around the low 50s mark to a dollar.

While high volatility of the rupee at Rs 56-57 to the dollar is not desirable; expecting it at sub-50 levels is also an improbability, he said.

“Rupee volatility at Rs 56-57 (to the dollar) is not desirable; the days of Rs 47 and Rs 48 are gone. It will probably be around the low 50s and we have to live with that,” he said.