Assuming favourable domestic supply conditions, international commodity prices remaining reasonably stable, and international crude oil prices remaining at around the current levels, Consumer price inflation based on CCPI is expected to be maintained at between 5 and 6% in 2012, the report said.

Inflation as measured by the GDP deflator is expected to be around 7.7% in 2011 compared to 7.3% in 2010. But, a moderation in price pressures is expected over 2012 thereby bringing down inflation as measured by the GDP deflator to around 6.5% in 2012, the report further said.