Inflation surges to a 13-year High of 11.05%

Breaking News! Even as the UPA government struggles to avoid a mid-term poll aftermath fallout with the Left on the Indo-US nuclear deal, it received another setback from the market. The inflation surged to a 13-year old high of 11.05% during the week ended June 07. This unprecedented rise has been attributed to the domestic fuel price hike.

If we go back to the history, inflation rate was at 11.11% last time on May 06, 1995 when Congress government was in power. The inflation may go up further when the data is received for the week ending June 14. The sensex reacted sharply with the BSE index going down below 15,000. Experts believe that interest rates may go up because of the high inflation.