Inflation Foxes

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Inflation has not only burdened the common man but foxed economists and policy planners with its erratic movement. Whenever they predicted a downslide, it has jupmed or vice versa. This has made our economists sound like a church choir, whose lyrics made little sense. All senior economists in the government felt that the wholesale price index-based inflation would continue to be in double digits till early 2009, but the rate of rising prices for the week ending November 1 dropped hurriedly to 8.98 per cent. This is what senior economists had said on inflation and how the rate of prices have risen or fallen: June 5, 2008: Planning Commission Deputy Chairman Montek Singh Ahluwalia said, &quot;It would be lower than the current level four months down... The direct effect of what has just been done (petroleum price hike) will probably be about 0.5%...&quot; Inflation for the week ending June 7 shot up to 11.05 per cent from 8.75 per cent a week ago, within days of government increasing the prices of a litre of petrol and diesel by Rs 5 and Rs 3, respectively and cooking gas by Rs 50 per cylinder. August 13, 2008: Former chairman of Prime Minister's Economic Advisory Council C Rangarajan said, &quot;For some more time inflation can increase. It could touch 13 per cent... But by December it will start declining and is likely to moderate to 8-9 per cent by March 2009.&quot; Inflation inched up to 12.82 per cent for the week ending August 16, but never touched 13 per cent. August 28, 2008: Chief Economic Advisor Arvind Virmani told reporters that inflation is likely to come down to 5-6 per cent over a period of 12 months. A few days later on September 1, Ahluwalia said that &quot;what I am saying is that over the next 3 or 4 months it (inflation) will definitely come down.&quot; November 11, 2008: Prime Minister Economic Advisory Panel Chairman Suresh Tendulkar said:,&quot;Inflation seems to be on the decline as international commodity prices are coming down and the domestic harvest is good. Early next year, inflation would be in single digits.&quot; &quot;The inflation rate, however, will show upward movement next month on account of the base effect,&quot; Tendulkar had said. &quot;I expect that due to base effect inflation is expected to shoot up in December before coming down to single digit.&quot; However, within days the inflation numbers plunged to 8.98 per cent for the seven-day period ending November 1. (PTI)