Friday, April 11, 2008

India inflation nears 4 year high


Watermelons at a wholesale fruit market in India
The government has said it will focus on capping price growth

Inflation in India climbed to its highest level in March for almost four years driven by rising metal, food and oil prices, official figures show.

The annual rate of consumer price growth was 7.4% last month, the highest rate since November 2004.

Concerned by rising food prices, India last week announced a ban on exports of non-basmati rice and removed duties on imports of crude edible oils.

On Friday, it banned cement exports and withdrew concessions for steel.

Trade Minister Kamal Nath said inflation control was a priority and more measures would follow.

Poverty measures

Unlike many countries India calculates inflation on factory gate prices or wholesale prices.

Prices paid by consumers in retail shops are higher and the issue of price growth and inflation has become a become sticky political problem with six Indian states going to polls in coming months.


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