Inflation in India touches a new high of 7.41 %April 11th, 2008 - 3:36 pm ICT by admin
New Delhi, Apr 11 (ANI): The data released by the Ministry of Industry for the week ending March 29, shows that the inflation has touched a new high of 7.41 per cent since November 8, 2004.
The Wholesale Price Index (WPI) based inflation rate is at the highest in the last three years. Last Friday the inflation was at 7 per cent.
Meanwhile, Prime Minister Manmohan Singh on Thursday has said that a steep rise in food prices would make it difficult to control inflation and that could hurt the cause of macro-economic stability.
Singh has urged the global community to join hands to control the mismatch in supply-demand.
He described it as a phenomenon being felt across the world in many countries.
He emphasized the need to find creative and imaginative solutions that increase farm incomes, food production and, at the same time, also contribute to greater purchasing power in the hands of the poor.
In order to check inflation, the Cabinet Committee on Prices (CCP) had decided on March 31, to abolish import duty on all crude edible oils, including palm and soya, and banned the export of non-basmati rice and pulses to contain inflation.
The Central Government also decided to raise the Minimum Export Price of basmati rice to 1,200 dollars per ton from 1100 dollars, to balance the demand - supply in the domestic market.
It was also decided to cut import duty on butter and clarified butter (ghee) from 40 per cent to 30 per cent, besides, the 15 per cent import duty on maize was abolished, applicable on import of up to five lakh tons.
The study done by a business conglomerate reveals that the Central Government’s efforts to contain inflation will start yielding results by August when inflation is likely to fall at of four per cent.
According to analysts, the announcement of Sixth Pay Commission recommendations, and provisions for enhanced expenditure on social sectors in the Budget 2008-09 coupled with rising crude oil prices have resulted in high inflation. (ANI)
Tags: basmati rice, business conglomerate, butter ghee, cabinet committee, crude oil prices, economic stability, edible oils, export price, farm incomes, food prices, imaginative solutions, import duty, inflation rate, manmohan, manmohan singh, prime minister manmohan, prime minister manmohan singh, social sectors, steep rise, wholesale price index