Inflation shot up to a 13-year high of 11.05 per cent in India

Inflation shot up to a 13-year high of 11.05 per cent for the week ended June 7. The hike was fuelled by rise in prices of petrol, diesel and cooking gas, giving the UPA government no relief from spiralling prices in an election year.

The rise in petrol, diesel and cooking gas prices announced by the government on June 4 put the pressure on the priceline, pushing the inflation to 11.05 per cent for the week ending June 7, up from 8.75 per cent in the preceding week.

Within minutes of the release of the government data, the sensitive BSE index of stock markets tanked about 350 points, reflecting the nervousness of the investors about the efficacy of the measures being taken by the Finance Ministry and the Reserve Bank of India (RBI).

Besides fuel prices, rise in prices of food products - particularly edible oil and manufactured goods - added to the pressure on the priceline.