New Delhi: Inflation, which hovered above 6.0 per cent in the beginning of this year, appears to have been reined in with Finance Ministry asserting that it would stabilise around 4.7 per cent by March end.

"Inflation is expected to be around 4.7 per cent, certainly less than 5.0 per cent by the end of his fiscal," chief economic advisor Ashok Lahiri said today (Mar 25, 2004).

The latest figure puts inflation at 4.91 per cent.

"Even if inflation goes up, we are not unduly worried," he said referring to the rise in global commodity prices that was reflected in India as well.

Asked if high inflation would put pressure on interest rates, he said with enough liquidity in the market, the rate scenario was "easy".

"This is the time to borrow and invest a lot," he said, allaying fears of interest rate firming up.

On the Rupee appreciation, he said in a market-determined economy, this was to be expected.

"But this is nothing to indicate that it is a permanent feature," Lahiri said.