Inflation has risen to a 13-year high of 11.05% for the week ending on June 7, 2008. This rise mainly due to crude oil prices rising by 7.8% with diesel increasing by 21%, petrol prices growing by 11% and LPG by 20%. Prices of soyabean, pulses have increased closed to 2-3%. RBI is expected to increase the CRR, Repo rate. This means, the banks would increase the interest rates as they are the worst hit due to the huge spike in inflation.
The Indian GDP growth is expected to slow down from the present 9% to about 6.5-7%. This comes as a huge shock to both the Indian public as well as the UPA government. But analysts say that the inflation could moderate on a fall in food prices, led by a good monsoon. The inflation could cool to 6-6.5% by year end.
The Indian GDP growth is expected to slow down from the present 9% to about 6.5-7%. This comes as a huge shock to both the Indian public as well as the UPA government. But analysts say that the inflation could moderate on a fall in food prices, led by a good monsoon. The inflation could cool to 6-6.5% by year end.
