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India and
inflation
·
On May 2,
2008 FM
Chidambaram
exuded
confidence
that
inflation
would be
tamed -
inflation
soared to a
42-month
high of 7.57
pc for the
week ended
April 19 on
account of
higher
prices of
vegetables,
food
articles,
steel and
some fuel
items
·
Wholesale
price-based
inflation
rose
0.24
percentage
points from
7.33 per
cent in the
previous
week despite
concerted
efforts by
GoI and RBI
to check
price rise.
·
GoI has
announced
slew of
measures
sacrificing
a revenue of
more than Rs
6,300 crore
to contain
inflation
·
RBI has
increased
Cash Reserve
Ratio
(proportion
of banks'
deposits
maintained
with the
apex bank in
cash) in
three
tranches to
tighten
money
supply.
·
An increase
of 0.75 per
cent in CRR
is expected
to suck out
about Rs
27,500 crore
from the
banking
system.
·
The common
man was
affected the
most by
surging
prices of
milk and
rice that
showed an
increase of
1 per cent
each, while
vegetables
were dearer
by 0.3 per
cent.
·
Prices of
tea went up
by 17
per cent and
mutton by
two per
cent, while
steel
products
became
expensive by
as much as
51 per cent.
-
Inflation,
which was
6.07 per
cent a
year ago,
had last
reached
the high
of 7.76
per cent
for the
week ended
November
6, 2004.
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