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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

Oil Prices set a historic record of above $115 per barrel on Thursday as a fall in US gasoline inventories lead to a shortage in supply.

US crude set a new high of $115.45 a barrel and by 0830 GMT was trading at $115.08, up 15 cents. Last Wednesday it was showing 114.20 a barrel, up 41 cents then previous day. London’s Brent North Sea crude for June struck its own record high of 112.35 dollars on Wednesday. It later stood at 111.96 dollars, up 38 cents.

“It’s very much the dollar that’s (behind) the increase,” said MF Global analyst Robert Laughlin.

The weakness of the dollar continued to attract investors into oil and commodities to hedge against inflation and bet oil’s five year rally would help compensate for shrinking values of dollar assets in their portfolio amid a slowing US Economy. The dollar fell to an all-time low against euro on Wednesday.

“The market was already in a bullish frame of mind prior the data partly buoyed by further confirmation that China continues its lust for oil,” MF Global said.

“Summer driving season is approaching. And even in a recessionary Economy, seasonal gasoline demand will pick up, which adds to stress on the global oil supply chain,” Jan Stuart, economist with UBS, said in a research note.

“But before we get there, the stress already put onto the supply chain globally by middle distillate demand and supply dynamics is not still abating.” He said.

Tags: Crude Oil, London, Oil Prices, 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