The recent duty cuts by the government may have some impact on softening prices after a couple of weeks, the Asian Development Bank (ADB) said today, even as it expected inflationary pressure to persist for a few more months. In its Asia Development Outlook released today, ADB expected inflation to fall moderately to 4.4 per cent this fiscal from 4.5 per cent in 2007-08, but said it is likely to rise again to 5 per cent next fiscal. "Inflation is the biggest worry for India at the moment. In next 1-2 months inflationary pressure will remain, it will come down as the US slows down further, at least for some commodities like fuels, metals,' principal economist with ADB's India Resident Mission Narhari Rao said. He said that the recent duty cuts announced by the Government may have some impact on containing inflation after 2-3 weeks, unlike RBI's monetary policy which has a lag effect. Rao said increasing food inflation will limit the effect of monetary policy, even though RBI is not expected to ease money supply so long as inflation is high. However, the Government's ability to control prices is limited since India is not alone in the region where inflation is rising and global commodity prices are also on the upswing, Rao said. The government has cut customs duties on edible oils and disallowed export of non-basmati rice, besides extending a ban on pulses exports for another year to soften inflation, which has risen to over a year high of 6.68 per cent. "However, the Government might have to increase subsidies in certain commodities like rice and wheat (through PDS) as their prices are rising globally and duties can't be reduced below zero,' Rao said. He praised the the Government for not taking any direct price control measures. Average inflation in India, which has been racing towards 7 per cent, is comparatively one of the lowest rates in the region, but India's sensitivity to rising prices is very high, Rao said. In the region, Sri Lanka has a whopping inflation rate of 20.2 per cent, Mongolia 9 per cent, Pakistan 7.8 per cent and Bangladesh 7.2 per cent. China has a comparatively lower average rate of inflation of 4.8 per cent but it has recently risen to double digits. Had prices elsewhere not been rising so fast, India could have been more successful in combating inflation but at the present juncture, its ability to do so is curtailed by increasing global prices, Rao said.