Inflation ended on May 3 is at 7.83% versus 7.61%. The Index of food articles is up by 0.5% , power is 0.8% and of manufactured products is up by 0.3%. Experts say that this Inflation can increase up to 8%.They say that this is because of iron and steel as there prices are so high that they affect the entire scenario of inflation. As a result the value of rupee cannot be increased it should not be depreciated.

According to the experts it would take lot of time slow down inflation. Seeing this inflation it is expected that Reserve Bank of India (RBI) in near future will have CRR hike of a 25 bps minimum and even a 50 bps hike.Experts says that we have to closely watch the exchange rates as in all over the world the commodity rates have become high.They say Monetary policy will not be useful in the period of inflation.

As Government is planning to remove restrictions on infrastructural companies as they are facing problems to raise long term resources from the market. It also difficult to see softening of rules in this conditions for credit requirements in global markets and emerging ones. In India there is expected to be more higher inflation which put a lot of pressure on interest rates. It is expected from RBI to keep this under control. It said that as already there is a slow down on production part so policy rates will not change.