Inflation touches 13-month high

The inflation touches 6.68 per cent and this is the highest in last 13 months. The government needs further fiscal measures to check the inflation rate. The furthe hike in the inflation will have negative impact on the economy, as the prices of goods and services would rise further. Inflation based on wholesale prices during the period January 1998 - January 1999 was 4.6 percent, one of the lowest in the world.

People of India felt the pinch of rise in prices of petrol & diesel prior to the budget presentation. The budget however gave a bit of relief to the people. This time the rise in inflation for last four weeks, would be a concern for common men. The term 'inflation' may be a jargon for a common man but they understand the true meaning by paying high for same goods and services, which they used to pay. However, fiscal measures could help the economy to ease the inflation pressure. The inflation pressure may be enough to change the interest rate structure in the days to come.