Fuelled by petro hike
NEW DELHI: Fuelled by the sharp increase in fuel and cooking gas prices, the inflation shot up to a 13-year high of over 11 per cent.
Coupled with increase in petrol product prices, the food prices put the pressure on inflation that touched 11.05 per cent for the week ending June 7, a development that could cause a major worry for the government.
Capturing 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, management of which is proving a major challenge for both the Finance Mi nistry and the RBI.
Inflation was 8.75 per cent for the week ended May 31 mainly on account of rising food, vegetable and fruit prices. After the release of the government data on price movement in the country, the Bombay Stock Exchange benchmark Sensex dipped by over 300 p oints, reflecting the concern of the investing community. - PTI