Inflation on Friday shot up to a 13-year high of 11.05 per cent fuelled by rise in prices of petrol, diesel and cooking gas, giving no relief to the government from the spiralling prices in an election year.
The rise in petrol, diesel and cooking gas prices announced by the government on June 4 put the pressure on price line pushing the inflation by week ending June 7, up from 8.75 per cent in the preceding week.
Within minutes of the release of the government data, the Bombay Stock Exchange’s Sensex tanked about 370 points, reflecting the nervousness of the investors about the efficacy of the measures being taken by the finance ministry and the Reserve Bank of India.
Besides fuel prices, rise in prices of food products particularly edible oil and manufactured goods added to the pressure on price line and woes of the government.
For the common man, it is a matter of huge worry. With prices of all commodities going through the roof, people are finding it impossible to make two ends meet.
Image: An Indian petrol pump attendant prepares to serve a customer at a petrol station in New Delhi. | Photograph: Manan Vatsyayana/AFP/Getty Images
Also read: 'Price rise is a fact of life. You have to adjust'