The inflation reached as high as 12.63% this week. There seems to be no apparent evidence of this upward trend stopping anywhere in the near future and you probably thought that the worst was over, and the bubble of inflation was on the verge of bursting.

However , if we go by what the government has to say in this regard the inflation is soon to be brought under control. The Union Commerce Secretary G K Pillai strongly suggested that this rise in inflation would be roped at below 13% mark. In fact you may say that he was rather optimistic in the belief that the inflation would soon be creepingdown. This is view has been presented on the basis that the food product prices have recently declined and also the production of the food grains have been reasonably good. The release of the buffer rice and wheat stock by the government would also be a contributing factor to the controlling of inflation. Also the imported pulses are expected to arrive soon.

We may also be able to bank on the good monsoons this year for the good production in the northern regions, which, has given the government convidence enough to be able to give such positive indicators.

What remains to be seen is whether these projections truely materialise or are mere farce to try and maintain a positive attitude towards the economic growth of the nation