Howrah News Service -  Latest news and headlines on Howrah,West Bengal and World: Inflation at 42-month high

Inflation at 42-month high
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newsbyte on 09 May, 2008 05:19:42
 
By Our Special Correspondent
Mumbai, May 9: The inflation figures surged to a 42-month high at 7.61 for the
week ending April 26 from 7.57 the previous week on the back of high prices of
food articles and tea. Most analysts saw no respite from the inflationary prices
because of the global situation and also because the government requires to do
much more than the measures it is taking today.
Most analysts felt that by May end when the rabi crop comes in prices may ease
somewhat, but the country will have to live with a 6.5 to 7 per cent inflation.
The finance minister, Mr P. Chidambaram, however saw Friday’s figure of 7.61
per cent as a "big relief" and said that headline inflation was showing signs of
stabilising at the current level.
He said the recent steps taken by the government would definitely help ease
inflation. However, if needed, the government was ready to take fresh measures
to curb the price spiral, he said.
"We are as concerned as everyone else. That’s why we are taking steps. Every
week there is a roll out of ome steps or the other. If necessary more steps will
be taken," he said.
Mr Anil Singhvi of Ican Securities said that worldwide the situation is
inflationary and "inflation will go up because of external factors like high oil
and food prices. The Centre’s efforts won’t help much. With the rupee
depr-eciating, it’s going to be a double whammy for the economy."
Mr Amitabh Chakraborty, president, (equity) Religare Securities Ltd. is of the
view that inflation won’t come down till the end of May when the rabi crop
starts coming in and the expectation of the monsoon.
But what has caused concern among analysts is the fact that the government has
revised its inflation figures for the week ending March 1 to 6.21 from 5.11 that
it had given earlier. "What we are seeing is that a few articles have been going
up. It’s a round robin situation," says " says Mr Alok Agarwal of K.R.
Choksey.