Inflation continues to remain high

InflationCongress-led UPA government continues to struggle as food inflation resurged to 16.35 per cent for the week ended on March 20 after cooling down to 16.22 per cent, its four-month low, for the week-ago period.

Rise in milk price and that of the pulses remained the driving force behind the bounce in food inflation. Moreover, as estimated by experts, this rise might lead overall inflation to breach into the double-digit territory. Inflation was pegged at 9.89 per cent in February.

With inflation continuously being a trouble for the government and the apex bank of the country, it is now expected that the Reserve Bank of India might just go for some stringent measure to curb overall inflation, including both food and non-food items, in its next monetary policy review meeting scheduled on 20th of this month.

However, going by analysts, food inflation may start relaxing in the near future, but the country's economy would continue to be under pressure due to high fuel prices. While fuel prices were already hurting everyone from individuals to corporate, budget announcements in the month of February enhanced fuel prices further ultimately adding to the overall inflation and everyone's woes.