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India: Inflation Hits the Roof

By Prensa Latina,

New Delhi : Inflation in India went up 7.57 percent in a week, its highest in 42 months, which motivated the government to ask a worried public for patience, while trying to come up with measures to control it.

The rise registered during the week ending April 19 was basically due to the rise in the price of vegetables, other foods, steel and hydrocarbons, said the Indian Finance Ministry.

In those seven days the inflation index went up 0.24 percent over the 7.33 percentage points registered the previous week, despite control efforts by the government and Reserve Bank of India.

In a call for calm, Indian Finance Minister P. Chidambaram said the inflation would be brought under control and told the people to be patient and have faith.

A year ago the index was 6.04 percent, the lowest since 7.89 in November 2004.

The Indian government implemented a package of measures to reduce tariffs on food and other imports, on which it is spending 1.58 billion dollars, and the Reserve Bank increased cash reserves in three segments.

Indian PTI news agency said economist D.K. Joshi predicted that the steps by the government and the Reserve Bank will ease the pressure in the future.

As of now, the ordinary citizen is the most affected by the rise of food prices, especially milk and rice, which went up 1 percent.

Vegetables increased 1.3 percent and steel products increased five percentage points.