Inflation a haunting issue

Inflation which has touched at an all time high of 7% this year is not likely to cool down easily.
Domestic tyres prices are set to go up across all categories in April.
Prices are likely to increase by 5% across all categories from the mid of april. Prices of raw materials used in the manufacture of tyres have increased significantly and the cost needs to be passed on to the buyers.
Tyres made in India have a ratio of natural rubber (40 per cent) and petroleum derivatives (60 per cent). Between the last quarter of 2007 and the first quarter of 2008, average prices of natural rubber rose by 4 per cent, while synthetic rubber moved up by 18 per cent.
Prices of chemicals and carbon black hardened by 16 per cent and 11 per cent, respectively. The highest price increase was witnessed in butyl rubber at 33 per cent.
On an average, prices of raw materials have appreciated between 12-15 per cent during the first quarter of 2008
Tea prices expected to remain firm thorughout the year
The tea industry has begun the year with lower stocks and a higher demand. The shortfall in the crop and a heigher domestic demand is likely to lead to better realisations. The industry claims that the manufacting cost too is on a rise on account heigher labour cost and social costs. Fertilisers too have become costlier to the tune of 30%
Loss in the wheat output in the northern region
The north western belt is facing untimely rainfall, hailstorms and strong winds at a time when the wheat crop was just ready for harvest. There has been widespread damage to the crops in states of Punjab, Haryana and Rajisthan and this is likely to have a negative effect on the buffer which the govt was planning to create and there is likely of a shorfall in production and at the same time the quality of the output is likely to be effected too.