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Once again inflation rate has reached a new height of 8.1% to give stress marks on the forehead of government and the public. Inflation struck at 8.1% for the week ending May 17 against 7.82% for the week ending May 10 in the face of surging international crude oil prices.

Finance Minister P Chidambaram, is however, still confident to suppress the rate and control the surging prices in India. The Finance Minister added that authorities may take more steps to control inflation if needed.

“It is worrisome, but we are confident of gaining mastery over inflation,” he said.

The inflation was 7.82 percent for the week ended May 10 as compared to 7.83 percent for the previous week, said the official figures released today.

During the corresponding week a year ago, the inflation stood at 5.62 percent.

Amid speculation of rise in prices of petroleum products, inflation is likely to remain high for the next 3-4 months. Analysts said that increase in the fuel price will further raise the inflation.

The Reserve Bank and government must have to take additional monetary and fiscal measures to control the rate.

Tags: Commodities, Essential Commodities, inflation rate, Prices, Rising Prices

Government’s steps against souring inflation seems to be working as it is revealed that inflation slipped to 7.14 per cent in the week ended on April 5, 2008 after the 41-month high at 7.41 per cent on the previous week.

The souring inflation is giving twists over the forehead of governments as well as making public worried about the family budget.

For the week ended on March 29, inflation had reached 41-month high if 7.41 per cent mounting pressure on the Reserve Bank to further tighten money supply in its forthcoming annual credit policy later this month.

It is first weekly decline in inflation after 8 weeks rise despite of increase in prices of vegetable, pulses, tea etc.

Edible oils and fruits prices, however, is showing a decline for the week ending April 5.

Metal prices and aviation turbine fuel price is also increased during the week

Inflation arrested could be attributed to the measures taken by govt. in the Cabinet Committee on Political Affairs meet on March 31.

Tags: Commodities, Inflation, Prices

In an attempt to control the increasing prices of the essential commodities 165 food godown were raided in Delhi as a part of a special drive launched by government. 2.5 lakhs quintal of illegal hoardings was seized from the godowns raided.

Against the complaints of black marketing of essential commodities, various rice and edible oil godowns were raided by the Food & Civil Supplies Department of Delhi Government on Monday. 46 godowns were challaned and 33 cases were registered.

It has been ruled by Centre to abolish import duty on Soya oil and palm oil. Strict action will be taken against traders who failed to pass on this benefit to customers, as told by Food & Civil Supplies Minister Haroon Yusuf.

Delhi government announced a raft of measures on Thursday, including setting up of special outlets to sell mustard and edible oil at affordable prices followed by a cabinet meeting on Friday to discuss the measures that should be adopted against the issue of inflation across the country.

Some measures were adopted by Delhi government to slow down the prices of essential commodities like special outlets across Delhi for cooking oil etc.

Tags: Commodities, Delhi, Food Crisis, Palm Oil, Soya Oil

Congress president Sonia Gandhi put her opinion on Monday regarding the issue of inflation. She said the government must control the increasing rates of essential commodities to make them affordable by common man.

In the latest issue of the party mouthpiece she said the state government to control the price rise and limit black marketing and hoarding. She said that higher growth is essential but it must be ensured by the government to remain the essential commodities within the range of common man.

“In recent weeks, because of international developments, we have had an increase in the rate of inflation in our country,” Gandhi said in Congress Sandesh.

Being the primary issue in coming elections, Gandhi said that the party confronts many challenges, most importantly, sustaining unity and discipline at all levels of the organization.

“It has gone out of its way to transfer huge amounts of money for development in Non-congress States without playing politics, which the Bharatiya Janata Party did when it was in power. It falls upon each and every Congressman and woman to become fully aware of these achievements and propagate them amongst the people,” Gandhi said.

Meanwhile, on the UNPA (United National Progressive Alliance) and the Left deciding to hold agitations against the government on the issue of price rise, AICC spokesperson Abhishek Singhvi said, “Nobody is agitating against price rise more than the government itself. Concern has been expressed by the government, by the Congress president.”

He said that Congress is highly concerned on this issue and taking serious actions to control.

“No government has taken the kind of decisions that this government has taken. You will see the effects in some days,” he said.

“UNPA is yet to be born, it is struggling to be born” he said while commenting on the UNPA.

Tags: BJP, Commodities, Congress, India, Price hike, Sonia, Sonia Gandhi

The feel good factor of the union budget is over now, India is now struggling from the inflation rate. The week which ended on March 22, inflation rate reached to a new high of 7%.

This new high inflation rate has increased the prices of all essential commodities like food, vegetables, minerals, steels, and other manufactured items. Within one or two weeks people are expecting a new high in the rates of the essential commodities.

This incident is putting some sort of pressure on the center’s UPA government lead by Manmohan Singh, who him self is a great economist. All the supporting parties are now pulling Congress for this issue, no one wants to face the blame for it.

Government has decided a few steps like to abolish import duty on crude form of edible oils, cut rate on refined edible oils and ban non-basmati rice exports but these are still not decreasing the rates of essential commodities.

It is now a bit sure that RBI will also going to take some step very soon to stop the further growth of inflation rate.

Tags: , budget, Commodities, food, India, inflation rate, minerals, vegetables

Congress on Monday said that the increasing prices of commodities are not happening in India only but it’s a global phenomenon.

All India Congress Committee (AICC) Media Department Chairman, M Veerappa Moily, told reporters that the party would ask the government to ban future trading in more farm items. It had affected such a ban with regard to some agricultural commodities including wheat.

Moily told that necessary measures are taken to slow down the current inflation and some more steps will be exercised in this regard. He cited the example of China where it is at a 12-year high with a rate of 8.7 per cent for February 2008 as the highest in last 12 years. There is a staggering rise in pork and vegetable prices seen in China.

On a day when the Left parties asked the Government to bring down prices of essential commodities within a fortnight, Moily said that the prices of both the commodities in China have risen by 63.4 per cent and 46 per cent respectively and there has been a sizable increase in the prices of food, fats and oils and grain in low and middle income countries in six months ending February 2008.

When asked whether a meeting of the Congress Working Committee will be held to discuss the issue Moily told that till now no date is fixed but the matter is considered by the Congress President.

Tags: Commodities, Congress, Price, UPA