India’s inflation rate has reached an astounding high of 9.78% as a number of countries struggle with financial problems.

India experiences its highest inflation rate in over a year

Inflation is a problem for a number of nations and countries, but even more so for the Indian government. With eleven rises in interest rates over eighteen months, the central bank seems to be struggling to control rising costs.

The 9.78% increase occurred last month, and was said to be one the highest levels the country has experienced in a year, according to officials. Rises in inflation and prices were also experience across the Asian continent last year.

According to the IMF (International Monetary Fund) India experienced a 13.2% rise in consumer prices for that period (read more about the inflation rises in Asia here).

Reports suggest that the recent increase was partly caused by the rising cost of food, fuel and goods – something which has become a common feature in a number of countries.

The news over inflation has caused some to question the government’s previous projection for an 8.5% growth for the fiscal year, which will end in March 2012. The rising prices and interest rates are thought to threaten this figure by restricting people’s abilities to spend.

It is also thought that India could become one of many nations affected by the growing European financial struggle. The current economic difficulties experienced in Europe are begging to affect less developed countries that may rely on the continent for much of their income.

Transfer Money to India

If you are looking to invest in India, think carefully about how you will be transferring money to India. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to India – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.