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Indian government in a bind as inflation hits 13-year high - Summary

Posted : Fri, 20 Jun 2008 11:24:04 GMT
Author : DPA
Category : India (Business)
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New Delhi - India's inflation rate shot up to a 13-year-high of 11.05 per cent, government data showed Friday, in a development that put further pressure on the government, which has already run into trouble with its left-wing partners over a nuclear agreement with the United States. The inflation rate, linked to India's wholesale price index, recorded its biggest one-week spike as it jumped to 11.05 per cent in the week ending June 7 from the previous week's 8.75 per cent.

The hike in the prices of petrol, diesel and cooking gas announced by the government on June 4 had pushed the inflation rate into the double digits. Besides fuel prices, increases in food prices, particularly edible oil, and manufactured goods added to the inflationary trend.

The inflation rate was the highest since M

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