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September 2008

Inflation to touch 17% by September, says Barclays.

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
Reading Time 1 mins
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74 Inflation to touch 17% by September, says
Barclays.


Global Investment banker Barclays Capital has
projected that inflation may surge to 17% by September on back of another round
of hike in fuel prices in the same month. ‘We believe WPI inflation will remain
in double-digit territory until May 2009. We expect WPI inflation of 17% by
September 2008,’ the report said. For the week ended June 28, wholesale
prices-based inflation touched a new 13-year high of 11.89% — much higher than
the Reserve Bank’s tolerance limit of 5.5% for the current fiscal. According to
the report, the government is likely to hike fuel prices by 10-20% again as
early as September to limit fiscal risks. Rise in the price of the Indian crude
oil basket to $ 145-150 per barrel from the current $ 132 per barrel could be
the trigger for another round of increase in fuel prices, it said.

(Source : The Economic Times, 14-7-2008)

 

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