Inflation at a 7.83% high for week ended May 3May 16th, 2008 - 3:48 pm ICT by admin
New Delhi, May 16 (ANI): The annual inflation rose to 7.83 percent for the week ended May 3 from 7.61 percent for the previous week. The data for the week ended March 8 has been revised to 7.78 percent versus 5.92 percent (provisional).
The food articles index and the manufacturing products index rose by 0.5 percent and 0.3 percent respectively. Fuel and power index was up by 0.8 percent. Markets have dipped following the release of the inflation figures. For the ninth consecutive week, inflation has hovered above 5.5 per cent, the central bank’s target for inflation by the end of the fiscal year ending in March 2009.
The government has cut import duties on edible oil, and curbed rice exports .It has forced steel and cement companies to cut prices, in view of coming state and general elections. Policymakers may take more steps to tame inflation if needed.
In April, The Reserve Bank of India (RBI) raised the proportion of deposits that banks must set aside by 75 basis points to a seven-year high of 8.25 percent, to suck out inflation-fuelling excess cash from the banking system. (ANI)
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