Inflation shock hits again

In sharp contrast to the claims of the Government that inflation is expected to fall below double digits soon, the rise in the price index to 12.01% came as a big shock to the country that was hoping some respite after the global crude prices have shown ease in their spurt.

The inflation rose by 0.3% from 11.9% for the week ended July 26. But despite the price index crossing the historic 12% mark the Finance Ministry has claimed that there is nothing to panic as inflation has remained stable on a weekly basis and the fuel index has also remained undisturbed.

The reason for this spurt has been attributed to the sudden rise in the cost of edibles like pulses, spices, egg, fish and meat.

"Infln seen below double-digits by FY-end"

India's headline inflation rate, which is ruling at a 13-year high just below 12 percent, is expected to fall to below double-digits by the end of the fiscal year, a top government official said on Thursday.

Montek Singh Ahluwalia, deputy chairman of the Planning Commission, which charts out five-year growth strategies, also said the softening of global crude oil prices was a "welcome development".

The government will release inflation data for the 12 months to July 26 at around 6:00 pm local time.