New Delhi: Seeking to allay fears of spiralling price level, Government today (Jun 25, 2004) said inflation had gone up to 5.89 per cent due to seasonal factors and prices of essential items will come down in near future.

Government also expects that rising inflation would not put pressure on the interest rates.

"Government is fully committed to price stability. Hardening of inflation was due to seasonal fluctuations and I don't think it will remain high. There will be a downward movement in coming months," chief economic advisor, Ashok Lahiri, said reacting to the rise in inflation.

Even in January, inflation went up to as high as 6 per cent, yet it came down later, he said.

He said there are two types of inflation, one is due to one-off effect because of seasonal factors, and the other is a continuous momentum in prices, which is worrisome.

"I don't think there is any momentum in prices and the inflation that is being witnessed was due to one-off effect in the face of soaring prices of fuel in international market, which was seasonal," he said.

He ruled out any impact of global inflation on domestic prices.