Softening global commodity prices coupled with a good monsoon at home could pull down the inflation to single digits early next year, PMEAC Chairman Suresh Tendulkar said while pitching for a further lowering of interest rates by the Reserve Bank of India [Get Quote].

"Inflation seems to be on the decline as international commodity prices are coming down and the domestic harvest is good. Early next year inflation would be in single digits," Tendulkar said.

The inflation rate, however, will show upward movement next month on account of the base effect, Tendulkar said.

"I expect that due to base effect inflation is expected to shoot up in December before coming down to single digit", Tendulkar said.

Pointing out that there is still a case for lowering policy rates by the RBI, Tendulkar said, "Personally I feel that there would be some scope for a further rate cut."

The RBI since October has already reduced several benchmark rates including the mandatory deposit that banks keep with the central bank (cash reserve ratio), the amount which banks have to mandatorily park in government securities (statutory liquidity ratio) and short-term lending (repo) rate to unlock banks funds and trigger a low interest rate regime.