In a further twist to the global inflationary spiral, Indian inflation has shot into double figures, reaching 11 per cent last month, its highest in 13 years. As in China, where inflation is nearing double digits, much of the recent increase in prices has been due to rising fuel costs after the withdrawal of state support.

Across China demonstrators have taken to the streets in protest at the end of official subsidies on petrol and a 17 per cent rise in its cost. In India, in common with many other Asian nations, the cost to the government of subsiding private transportation at a time of soaring crude oil prices has become prohibitive. ... Read full article