Inflation surges to 5.55 pc, set for further rise

Inflation 8212; the indicator of the rise in prices of various goods and products 8212; rose sharply to 5.55 per cent for the week ended June five due to a whopping five per cent rise in vegetable prices and a substantial hike in manufactured items and fuels used for power generation and fertiliser production. As the hike in petrol, diesel, LPG and coal prices will be calculated only next week, inflation is set to rise sharply and cross the 6 per cent level in the coming weeks. Cement and steel are expected to cost more due to the price hikes. A steep rise in inflation level will push up interest rates in the country.