Saturday, May 17, 2008

Inflation hits 44-month high of 7.83% for the week ended May 3

The last time inflation hit such a high was in September 2004, when it touched 7.86%.

Despite a high base effect and slew of fiscal and monetary measures initiated recently, inflation accelerated from 7.61% for the week ended April 26, suggesting that the government and RBI may have to initiate more steps to hold the price line.

“In view of these developments, it is very difficult to see prices coming down. In the coming days, the possibility of 8% inflation cannot be ruled out if the prices in global market continues to surge,” Crisil principal economist DK Joshi said.

-The Economic Times

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