Snippets - Fri, 2 May 2008
Kavit Sharma 02 May 2008 | : News' snippets
- Sensex highest close in 2 months at 17600
- Oil prices fall below $112 as dollar strengthens and investors exit market
Poor man’s nightmare : Inflation jumps to 7.57%
Kavit Sharma 02 May 2008 | : Business News - India
Indian inflation jumped to a fresh 42- month high in mid-April, and analysts said it is unlikely to ease soon as price pressures persist and fiscal and monetary steps will take time to have an impact.
Data released by the government on Friday showed the wholesale price index rose 7.57 percent in the 12 months to April 19, above the previous week’s 7.33 percent and outstripping market expectations of an annual rise of 7.38 percent. Wholesale inflation now stands at its highest since Nov. 13, 2004, when it was 7.68 percent. The latest rise was largely driven by higher prices of foods, metal products, and industrial fuels.
The government and central bank have rolled out a string of policy changes in recent weeks as inflation has soared. In the latest move, the Reserve Bank of
Economists expect the central bank to focus on draining inflation-fuelling cash from the system, while the government moves to fix supply-side problems. The Congress Party-led coalition, under pressure from its allies, also unveiled new measures on Tuesday to tame inflation and guard food supplies, slapping export taxes on basmati rice and some steel products. Fighting inflation has become a top priority for the government as it heads towards a general election due by May 2009 and a series of key state polls this year.
Meanwhile, Finance Minister P Chidambaram on Friday said inflation will be tamed and food prices will come down sooner than other prices.
Policy planners the world over are grappling with soaring food and raw material prices. But
