Inflation soars to record high

Refusing to be reined in, inflation struck yet another high note reaching 8.1% for the week ending May 17. It was 7.82% for the week ending May 10 in the face of surging international crude oil prices. Wholesale prices rose 8.1% in the week ended on 17 May from a year earlier the government said on Friday.

Announcing the figure on Friday, Finance Minister P Chidambaram expressed confidence that the government would be able to soon rein the inflation in.

"It is worrisome, but we are confident of gaining mastery over inflation," he said.

The Finance Minister added that authorities may take more steps to control inflation if needed.

The rate of rising prices was much higher at over eight percent even as of March 15, a period for which the government now released final inflation figures.

The inflation was 7.82 percent for the week ended May 10 as compared to 7.83 percent for the previous week, said the official figures released today. During the corresponding week a year ago, the inflation stood at 5.62 percent.

Amid speculation of rise in prices of petroleum products, inflation is likely to remain high for the next 3-4 months, while the Reserve Bank and government may have to take additional monetary and fiscal measures, said analysts.