Sudden wake up by Indian Govt against INFLATION

Inflation is unacceptably high because of a spurt in the global prices of food, fuel and metals. The central bank is ready to take steps to contain inflation after assessing the situation, Reserve Bank of India Governor Yaga Venugopal Reddy said in Mumbai yesterday.
The cabinet yesterday banned the export of non-basmati rice, extended a ban on the export of pulses, which was ending yesterday, for one more year. It also scrapped the import duty on maize from 15 percent under the tariff rate quota.
Government also curbed exports of wheat and banned futures trading in some commodities. Last week, the government scrapped a tax benefit on exports of steel and cement to bolster domestic supplies.
RBI will maintain tight policy to contain excess liquidity and may infuse funds from banks.It may consider hiking CRR.Allow rupee to appreciate further.
If growth is coming in the way of inflation, the government will choose to live with little less growth than higher inflation,'' said Dharmakirti Joshi, an economist at Mumbai-based Crisil Ltd., the local unit of Standard & Poor's.
The government should not hesitate to ban speculative futures trading on commodities ,Left cries.
Opposition parties may want inflation to use it as election campaign.
Let's hope for the best but
Keep a big purse to spend.