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Inflation at 13-year high of 11.05%
June 20, 2008 12:08 IST
Last Updated: June 20, 2008 12:24 IST
Fuelled by the sharp increase in fuel and cooking gas prices, the inflation shot to a thirteen year high of over 11 per cent.
Food prices, too, put pressure on inflation for the week ending June 7, a development that could cause a major worry for the government.
The central government's decision to hike petrol prices by Rs 5 a litre, diesel by Rs 3 a litre and domestic cooking gas by Rs 50 a cylinder led to the spurt in inflation.
Managing oil prices has become a major challenge to both the petroleum and finance ministries.
Inflation was 8.75 per cent for the week ended May 31 mainly on account of rising food, vegetable and fruit prices.
Within minutes of the release of inflation data, the Bombay Stock Exchange benchmark Sensex dipped by over 200 points, reflecting the concern of the investing community.
More details soon...