Inflation Rate reaches a 13-Month High

The inflation rate of the country has reached 6.68%, a 13-month high, putting more pressure on the government and RBI. The unprecedented increase in inflation rate, has been attributed to price rise and global fears of US recession. Although the Indian Rupee has gained more than 1.4% against the US dollar, tension still prevails in the market.

In the past few weeks, food and other commodity prices have witnessed sharp increase, thus making the life of common people more difficult. According to the analysts, the main risks to inflation still relate to fuel and food. Even though the government has cut import taxes on edible oil and stopped exports of wheat, sugar, rice and edible oils, situation seems far from beyond control.