Inflation elevated to 10.16 percent

Inflation rose to 10.16 percent in May from 9.59 percent in April due to elevated food prices and certain manufactured items like metals turning expensive. The essential items which have become expensive, directly hitting the pocket of the common man, include pulses, vegetables and sugar.
The prices of metal, textiles and plywood prices have also gone up, as inflation has spread to non-food items.
Prime Minister Manmohan Singh had said last month that inflation would moderate to 5-6 percent by December. And now the situation is getting more and more worse . Rising inflation may prompt the Reserve Bank to tighten money supply at its first quarterly review of the monetary policy due on 27th July.