Inflation nearer to 8%

Inflation marched to a near-four-year high of 7.83 per cent for the week ended May 3, frustrating the government which has unleashed a volley of fiscal and some measures to rein in prices.
In the previous week, the rate of inflation was 7.61 per cent, while it was 5.74 per cent a year ago.
However, prices of cement, iron and steel fell, giving some respite to the government. These items have been among the major contributors to the recent surge in inflation. Iron and steel prices declined 1.7 per cent, while cement fell 0.4 per cent.
Finance minister P. Chidambaram today blamed the spurt in inflation to the high prices of manufacturing items, power and fuel and lubricants. He said the silver lining was the declining trend in food inflation.
According to the finance minister, “Unless crude prices decline, I am afraid we are stuck with high fuel inflation.”