Business Desk :
The target of limiting average inflation to 5.6 per cent in the next fiscal is quite ambitious due to the current context and shifting of global economic factors, said the South Asian Network on Economic Modeling (SANEM).
To ease the pressure of food inflation on people, the budget promises to continue taking actions against hoarders, but does not offer any detailed action plan, it said on Thursday.
Provisions for decreasing tariff on essential items, exploring alternative import sources or similar supply side interventions for tackling inflation, have not been clarified in the budget, it said. If the inflation rate exceeds 6.0 per cent then the real interest rate would become negative, it said.
