To check the high inflation rate, the Reserve Bank Of India (RBI) is planning to increase the interest rates. Recently the inflation rate touched 7.41% in the week that ended in March 29, the highest in the past three years. The prices of essential commodities like vegetables, fruits and pulses are rising constantly and the UPA government has failed to check the prices. The government has already said that it doesn’t have any magic stick to stop inflation.

 

But it is planning to take some hard measures to curb inflation. The government is planning to ban the export of steel and cement which are the main causes of the rising prices. It is also planning to lower the excise duty in steel from 14% to 8%. The rising prices can hit the Congress in the upcoming Karnataka Polls and in the general elections of 2009.

 

The prices of vegetables have risen by 16% in the past one year whereas the prices of cereals have gone up by 6.6%. The measures of the RBI and the government are expected to curb inflation, which has broken the backbone of common man.