How The Petroproduct Price Hike Will Fuel Inflation Initial Price Hike

Cascading and indirect impact:2%

AFTER ROLLBACK OF DIESEL PRICE HIKE

Immediate impact:0.92%

Cascading impact by end of 1996-97:1.40%

ECONOMIC EFFECTS

Economy strained of money Fall in demand for other products Contractionary tendencies

Source:NCAER's standard short-term macro model