New Delhi: Unfazed by rising inflation at over 6.0 per cent, Finance Minister Jaswant Singh today (Jan 21, 2004) said the Government was confident it would be contained at 4 to 4.5 per cent annual average by March end, as projected by Reserve Bank of India (RBI).

"Inflation has peaked. It is basically because of cyclical fluctuations contributed mainly by rising prices of petroleum products. I am confident that RBI target of 4 to 4.5 per cent annual average will be achieved," Singh told reporters after launching TIN in New Delhi.

Indian economy has the ability to absorb any global price hikes mainly on account of volatility in petroleum product prices, he said.

Reserve Bank has projected 4 to 4.5 per cent annual inflation this fiscal.

But the price level surged by 6.09 per cent in the last week of December.