New Delhi, June 20 : Inflation shot above 11 per cent to a 13-year high following a rise in state-set fuel prices and rattling markets, prompting the Finance Minister P. Chidambaram to warn of stronger anti-inflation measures ahead.
The Government will have to look at stronger measures to counter rising inflation, the Finance Minister said today after data showed annual wholesale price inflation at a 13-year high of 11.05 per cent.
Food prices have been a source of concern for the Congress party-led United Progressive Alliance (UPA) Government as it impacts the poor the hardest, but the food articles index fell 1.1 per cent in the June 7 data.
"We are facing lot of difficulty due to rising prices of essential commodities. When we want to purchase fruits and vegetables we have to kill our desires. What else can we do?" said Nupur Shukla, a housewife.
Galloping inflation rate has affected poor fruit and vegetable vendors. There are fewer customers and vendors have lost their business.
"If we don't earn anything how will we feed our children? We won't be able to provide clothing, education and other necessities for our children. How will we secure their lives and future with these galloping prices?" said Dev Singh, a fruit vendor.
Common man in India feels that rising inflation rate has severely affected their budget and the Government should take appropriate action.
Stoked by a fuel price hike of about ten per cent early this month following cut in subsidies, the double-digit inflation rate will also heap political pressure on the Government ahead of state and national elections in the coming months.
Surging food bills have contributed to a string of defeats for the ruling Congress party at state elections over the past few months.