Fuel costs push India's inflation rate to 13-year high

India's inflation has risen to new heights as official figures yesterday revealed that increased fuel prices have pushed up the costs of food, building supplies and steel. The new figure of 11.63 per cent recorded during the third week of June is the highest for 13 years, and almost a threefold increase from last summer's rate of 4.3 per cent. Analysts had predicted that the rate would be close to this level, as the prices of cooking oil, fruit, tea, vegetables and other staples have jumped as a result of the increased fuel costs. This week, thousands of lorry drivers across India held a one-day strike in protest at a rise in diesel costs. Economists have estimated that growth in Asia's third-largest economy will slow this year as a result of challenging global fin-ancial conditions. The Prime Minister, Manmohan Singh, has... [read full story]