Inflation may moderate in few weeks - plan panel official

NEW DELHI - India's annual inflation rate, which is ruling at its highest in more than three years, may moderate in a few weeks, and the government could take more steps if prices are not contained, a top official said on Tuesday.

Montek Singh Ahluwalia, deputy chairman of India's Planning Commission which charts the country's five-year economic plans, said he expects the economy to expand by around 8 percent in the fiscal year ending March 2009.

"I do hope that in the next few weeks inflation will moderate. The government can take more measures if prices are contained," Ahluwalia told reporters on the sidelines of a business conference.

"My projection was 8.0-8.5 percent. I will be happy at the lower end. A growth of around 8.0 percent is quite acceptable."