Inflation rate doubles in three months of 2008
Much to chagrin of the UPA government, inflation rate almost doubled during the three months of 2008 to reach the 39-month high mark of 7 per cent.
Although 2008 began with inflation rate of 3.79 per cent for week ended January 5, prices rose as the year progressed.
The wholesale price based inflation crossed 4 per cent by end of January and 5 per cent in February. As per the latest data, the price line rose 7 per cent in the week ended March 22.
The annual rate of inflation since January, according to official data, has gone up by 3.21 per cent with highest increase of 1.98 being recorded during the four weeks ended March 22.
Such a sudden spurt in prices has thrown household budget of the common man into disarray, putting pressure on the government and the Reserve Bank to take steps to control the inflationary pressure.
Although the government has already taken a host of fiscal measures like scrapping import duty on crude edible oils and banning export of non-basmati rice and pulses to check spiralling prices, the impact would be felt only by the end of the month.
Sending a strong signal to hoarders, Commerce and Industry Minister Kamal Nath had warned "We will not hesitate to take the strictest measures, including using legal provisions against hoarding and profiteering whether in food, cement or steel."
Rising prices have already taken a political colour, with senior BJP leader and former Finance Minister Yashwant Sinha accusing the government of "complete failure" in checking the price rise.