Is Singh really in control of inflation? Uhm… not sure

Inflation, high price and growth are what people care most about at the end of the day and India’s prime minister Manmohan Singh knows that.

Talking to reporters on Tuesday Mr Singh said that his government would do anything possible to sustain growth momentum and curb inflation, in the face of external pressures on account of rising crude oil prices.

Inflation: more bad news according to BarCap

“We believe WPI inflation will remain in double-digit territory until May 2009. We expect WPI inflation of 17 per cent by September 2008,” says Investment bank Barclays Capital in a report.

BarCaps prediction is on the back of its expectations that the government will raise fuel prices again – between 10 and 20 per cent – by the end of September 2008 to lower fiscal pressure.

However, the seems to have little impact on the stock exchange, which is trading fairly flat on Monday.