The finance ministry is not revising its inflation target of 5 to 5.5 per cent for 2005-06 even after the fuel price hike.
"So far, so good. I am not revising my target, and endorse RBI's projection of 5 to 5.5 per cent inflation during this fiscal," Ashok Lahiri, chief economic advisor of the finance ministry, said on Friday, but added that "much will depend on the international oil prices."
"Domestic inflation is quite satisfactory. Nothing has changed that will lead us to change our projection," he said referring to inflation that rose marginally to 3.16 per cent during the week ended September 3.
Though global crude prices touched $70 per barrel, and was putting pressure on domestic prices as well, Lahiri said, "There was some decrease in the international prices of crude. I hope the trend will continue."
"Because of our refining capacity, increase in global crude prices have some impact but not much. Impact would have been felt had we imported entire petroleum products," he added.
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