Inflation foxes Govt economists, again!

New Delhi, Nov 13 (PTI) 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 have had to say on inflation and how the rate of prices have risen or fallen: June 5, 2008: Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "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%..." 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, "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." Inflation inched up to 12.82 per cent for the week ending August 16, but never touched 13 per cent. PTI