Inflation Rises To No End
The inflation climbed to a new 13-year high of 11.42 per cent mainly due to rise in prices of food and petroleum products, in spite of Government’s woes to control the prices. The food products include milk, cereals and edible oils.
At 11.42 per cent, it has crossed the high of 11.11 per cent witnessed on May 6, 1995, but was still below 16.9 per cent recorded in March that year.
Official data released on Friday revised the provisional wholesale price index-based inflation upward by 66 basis points to 8.23% in the third week of April.
The latest figure has captured the second round effect of the increase in government-fixed auto fuel announced earlier this month. Inflation stood at 4.13% in the same week a year ago.
Finance Minister P. Chidambaram said that the spurt as the second order effect of the June 5 hike in prices of petrol and diesel and that the government would explain to the people, why prices are high and what steps are being taken to moderate inflation.
Many food products saw a hike including prices of tea which went up by three percent, milk by one percent, sunflower oil by four percent, vanaspati by two percent and imported edible oil, salt mustard oil by one percent each.
Other than this, daily use-items like soap became expensive by eight percent, detergent by nine percent and hair oil by one percent.
Besides, fuel items especially lubricants became dearer by 19 per cent, while prices of steel products like wire ropes and steel wire shot up by 36 and 25 per cent respectively.
The index for fruits and vegetables, however, for the week ended June 14, 2008 stood 5.8% higher than its level on June 16, 2007, showing a positive rate of annual inflation even in this category.
According to Finance Minister P Chidambaram, inflation "will remain in double digits for some more weeks." The government and RBI have already taken measures to control inflation; he had said and added that "if necessary we will not hesitate to take more fiscal and monetary measures."