Inflation rises to 0.61per cent from 0.48 per cent

The inflation rises to 0.61 per cent for the week ended May 9 from 0.48 per cent recorded in the previous week. The rise in the inflation is due to the prices of the essential goods and services in India.

The Reserve Bank of India may go for further measures to check the liqudity crisis in the market and the inflation is no weighing high on the economy. The price of the food items is the major concern for the people and they spend a major portion of their household budget on food items.

The rise in the inflation however is good indication for the economy at this juncture. The impact of the global slowdown is there and affected the household budget. It is expected there will a marginal rise in the inflation in current fiscal. The inflation rate in 2008-09 was at around 8 per cent and the current rate is around 0.1 per cent.