The government said on Tuesday it is keeping a close watch on the price movements in a bid to keep inflation around five per cent.
"Inflation is under watch," Chief Economic Advisor Ashok Lahiri said on the sidelines of a seminar in New Delhi.
The government is looking at movement and inflation will not exceed the Reserve Bank of India forecast of 5 to 5.5 per cent for the current fiscal, he said.
The wholesale price-based inflation, which remained well above five per cent for the past few weeks before peaking at 5.41 and drastically coming down to 5.09 per cent for the week ended October 28 it 5.09 per cent.
As per the economic think-tank National Council for Applied Economics Research, India inflation would remain around 5.5 per cent in the remaining period of this fiscal despite it being at 4.8 per cent in the first half.
On fiscal deficit, Lahiri said the finance minister has already made it clear the government would meet the FRBM target.
There is little likelihood of slippage, he said. Revenue performance is good...hope good news will continue and the budget estimate for the revenue collection will be met, he said.
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