In a report called ‘India Macro Stance’, Goldman said that inflationary pressures were sequentially building up. Recent data on both the Wholesale Price Index and the Consumer Price Index showed a sequential bottoming out between February and April. Latest readings of price indices were showing a bottoming out of inflation, it said.
Along with rising crude oil prices, rising price of food might pose a threat the overall economic growth of the country. Prices of wheat, rice and sugar have been constantly rising for the last two months. In August 2008, Indian inflation rose 16 year high to 12.91% which created serious problem for common man as prices of daily necessities rose. However, Indian Prime Minister, Manmohan Singh said that stimulus package offered by the government will not add to inflation but to economic growth.