Inflation in India sky rockets, hits three-year high

by Sanjay Jha | May 1, 2008 at 11:53 pm

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Despite Indian Prime minister's repeated assurance to tame inflation. Inflation in India's $912 billion economy is steadily rising with the increase in the prices of food and manufactured products especially steel and cement. Indian government had slapped export taxes on basmati rice and steel products. Govt also cut customs duties on many products to boost import and stem inflation.

Inflation galloped to 42-month high of 7.57 per cent for the week ended April 19 as compared to 7.33 per cent a week ago mainly on account of higher prices of food articles like rice, milk, tea, vegetables and some manufactured products.

The wholesale price based inflation stood at 6.07 per cent in the corresponding week a year ago. The previous high of 7.76 per cent was recorded for the week ended November 2, 2004.