Oct 24, 2005 at 07:22pm IST

Inflation will remain at 5 per cent: FM

New Delhi Finance Minister P Chidambaram on Monday said he expected the rate of inflation to remain moderate at about 5 per cent by the end of this fiscal.

?We are keeping a close watch. I think the pass-through impact of oil prices on inflation is over,'' Chidambaram said in Delhi.

Stressing that the Government as well as the Reserve Bank of India (RBI) expected inflation to remain benign, he said, ?Our paramount aim is to keep inflation moderate.?

The point-to-point wholesale price inflation rose to 4.62 per cent during the week ended October 8.

Chidambaram had earlier said that interest rates were likely to remain stable in the short and medium term and the RBI would act if a rise in fuel prices made more than a moderate impact on inflation.

The RBI is due to release its mid-year review of monetary policy on Tuesday.