Headline Inflation In June Likely To Hit 9.5%

Submitted by Monica Anand on Sat, 06/25/2011 - 04:34

Headline Inflation During June Likely To Cross 9.5%

The surge in rates of petroleum products, comprising diesel as well as LPG, is expected to have upward pressure on the inflationary numbers, which surpassed the 9% level during the last month (May 2011).

Crisil chief economist D K Joshi stated that the recent hike in diesel and LPG will raise inflationary numbers by around 50-60 bps.

With unpredictability in the rates of crude oil in the global market, the increase in the prices of petroleum products was broadly anticipated.

Mr. Joshi added, "Inflation was being artificially suppressed (as the price hike was being delayed)."

Specialists stated that increase in rate of kerosene, diesel and cooking gas would only raise the inflationary strain on the country's economic system.

They stated that headline inflationary numbers during the month of June are expected to hit 9.5%.

Responding on surge in prices of petroleum products, the Left parties also said that they will organize countrywide protestation against increase in the rates of diesel, kerosene and LPG.

The Left parties also said that the increase in the prices of petroleum products was "totally intolerable".

Overall inflation reached 9.06% during the last month as against 8.66% in April 2011.

For the week ending June 11, food inflation hit a two-and-a-half-month peak of 9.13%.