21.6.08

Inflation at a 13 year high

It still surprises me to see the over reaction of the media to Inflation hitting 11.05%.This was quite expected,once the fuel price hike got factored in.All major players expected inflation to be in double digits.So why this kind of hysteria?Yes,the UPA government could have increased petroprices earlier and the inflation would have rocketed at that point of time.We as a country will have to learn to live with high prices of petroproducts and reduce our dependence on Oil.The Nuclear Deal with the United States must go ahead in the interest of India and her future.We have very few options available at this moment of time.Subsidising petrol,LPG should slowly come to an end.Hike in prices would automatically result in the consumption coming down.Even China has done an abrupt U-turn and gone and raised petroleum prices by 18%.This is expected to cause a dramatic rise in inflation, which is at a 12-year high.Sounds similar does n't it?


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