Mumbai: Hinting at a reduction in pressure on prices, Chief Economic Advisor to the Union Government Ashok Lahiri today (Aug 5, 2004) said that "inflation has peaked" and the recent rains will have a beneficial impact on the economy.

Lahiri, who is in Mumbai to attend the board meeting of Securities and Exchange Board of India (SEBI) said, "It (inflation) has peaked."

Inflation, which was on the rise in previous three weeks, had remained static at 6.52 per cent for week ended July 17, 2004.

Reserve Bank of India Deputy Governor Rakesh Mohan, however said last week that it was not changing the inflation forecast of around five per cent as announced in the annual policy for 2004-05.

He also said that there was an evidence of (international) commodity prices moderating.

Lahiri, when asked about the impact of recent rains, said, "It is good."

"The sowing for the current crop season has been delayed only in few areas as per the latest information available," he added.