India's union Finance Minister Pranab Mukherjee has said that he expects the rate of inflation to come moderate to around 6-7 % by March, 2012.

"If this trend continues, perhaps we may have the year-end inflation at around 6-7 %," Mukherjee said in the national capital, New Delhi as the food inflation in the country fell steeply to 8 %. The headline inflation in the country, which is measured ont eh basis of the Wholesale price index, has been holding in double-digits in recent months.

He also said that the food inflation has recorded a declined to 8 per cent for the first time since August. Inflation in the overall primary articles was recorded at 7.74 % during the week till November 19 compared to 9.08 % in the earlier week. The inflation in the non-food articles was at 2.14 % during the week compared to 4.05 % in the earlier week.

The decline in food prices comes as a great relief to the government in the country as well as the central bank, which has been facing criticism from various sections for its stringent monetary policy tightening stance to control inflation.

The Research Bank of India has increased its key interest rates 13 times since March 2010 to control inflation in the country. Many believe that the high interest rates have affected growth in the Indian economy.