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Inflation has shot up to a 16-year high of 12.44 per cent!

Despite the government's efforts to control prices, inflation continues to rise, as prices of pulses, spices, eggs, fish and meat among other things continued to rise.

The government on Thursday put the inflation for the week ended August 2 at 12.44 per cent, a rise of 0.43 per cent increase over that recorded in the previous week, even as the finance ministry said that the Sixth Pay Commission recommendations will not affect inflation further.

However, the finance ministry said that the rise in inflation comes as a major disappointment.

As per the data released today, prices of most of food articles went up, although some items like fruits showed downward trend, said official figures released.

In its statement, the ministry said out of a total 98 primary articles, prices of 18 have declined as compared to the previous week.

Finance Minister P Chidambaram had said at a meeting of Congress spokespersons that government was open to bringing more commodities under the futures trading ban. Eight farm commodities, including rice and wheat, are already banned for the purpose of forward trading.

Meanwhile, prices of iron and steel remained unchanged but cement prices marginally increased. For the corresponding week, inflation stood at 4.70 per cent a year ago.

Inflation: The silent killer!