Amid a concerted Opposition attack on the government within and outside Parliament on rising

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prices, the Planning Commission today said inflation will come down to 6 per cent from its present "uncomfortable" level by this year-end.

"It is true, inflation is uncomfortable, but will progressively become less uncomfortable. It is coming down but not until the end of the calendar year, you will see it coming to what I call a more comfortable level," Deputy Planning Commissioner Montek Singh Ahluwalia said.

Noting that a normal monsoon will definitely help rein in rising prices, he added, "We are not going to be stuck in double-digit inflation. It will get to 6 per cent by the end of December."

He was speaking during an interactive session organised by the Bangalore Chamber of Industry and Commerce.

He further said that the government was taking all possible steps to bring down the rate price rise.

"It (inflation) is a problem and the government recognises it," he said.

Wholesale price-based inflation rose to 10.55 per cent in June, owing to pass through effect of the June 25 hike in prices of petroleum products.

Commenting on the hike in fuel prices, he said, "You will see the impact of fuel prices fully in July. After July, it will definitely keep coming down."

Replying to a question on rationalising petroleum product tax structure, he disagreed with the idea of lowering taxes on petroleum products and passing it on to other products.

"Rationalistion of petroleum tax as way of moderation of inflation is not the solution", he said. "Policy on petroleum product is the right policy to follow and in long term it points in the right direction".

Three days ago on July 27, the Reserve Bank in its monetary policy review had said inflation is expected to cool down to 6 per cent by March from the present double-digit level.

Earlier, Prime Minister Manmohan Singh had held that food prices would soften in in the second half of the fiscal and overall inflation would settle at the 6 per cent level by December.

The Prime Minister's Economic Advisory Council (PMEAC), on the other hand, had forecast the attainment of a slightly higher inflation level of 6.5 per cent by March.

Aiming to rein in rising prices, RBI in its review had raised short-term lending and borrowing (repo and reverse repo) rates by 25 points each.

Speaking on measures taken by RBI to control inflation, Ahluwalia said, "RBI has given the right signal that it will not let inflation go untouched. The signal is very clear."

Ahluwalia said that though a drastic liquidity squeeze could kill inflation, it would not be a "clever thing to do".

"You have to cure the problem, without the cure being worse than the disease."