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India's Finance Minister says inflation will stabilize after new crops come onto the market. The Economic Advisory Council says inflation will hit 7 to 8 percent by the year-end, compared with about 11 percent in June.
India puts high food prices as the cause and predicts normal monsoon rains will cool inflation, while India's Reserve Bank says demand will continue to put pressure on inflation. But the Finance Minister hopes the new summer crops will help stabilize inflation.
Pranab Mukherjee, Indian Finance Minister said "I do hope it will stabilize after a good crop prospect which is likely to happen during the Kharif (summer or monsoon sown crop) season, and, from, after the crop season is over, monsoon is over, the moderating influence on the price front will be felt."
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