infaltion rised to 11.05%

Surely the short term consequences of rising inflation are negative for the economy as well as the common man. We are likely to see some steps coming from the RBI which could be an increase in the CRR and a hike in the repo rate which would suck out money from the system leading to a reduction in demand and slowing down of the economy as the industry would have to cope with rising cost of loans. Another thing which i would like to highlight here is that if planners make an indept study they might end up promoting use of alternative fuels like natural gas, wind and solar energy, farm planning where in these steps would see that the country is in a position to face the crisis over a longer term. A recent decision by the govt for hiking taxes on cars with large engines surprised me. It could have classified cars on the basis of fuel effeciency and then gone for variable taxation to tax ineffecient cars. This would have sent the right signals and at the same time would have also met the revenue targets. But i find this part missing among our planners.

Everyone is suffering from inflation. It is eating us up. My money doesn't go very far and so I have quit shopping for anything but essentials. You know food and water, enough gas to get me to work and back. All the extras will just have to wait until something is done about high prices, especially gasoline and electricity. I can only imagine how this will affect manufacturing when people quit buying trinkets.

If you are talking about India, i will say its a bad sign. the inflation is going leaps and bound and there si no way to escape from it.