In China and India, the two leading economies of Asia, inflationary spiral is ever more strongly is running high. Analysts believe that inflation in both countries has to a larger degree imported nature.

As Indian authorities reported on June 20 that after the first week of the month the wholesale prices in the country had grown  by 11.05 percent in annual calculation.  As the main reason for this was indicated the increase of world oil prices.

Earlier in June India was forced to raise domestic prices of fuel to compensate for the loss of national petrol producers. Last week China also raised the prices of oil products.

According to official estimates, growth of consumer prices in China in May reached 7.7 percent in annual calculation, in India at the beginning of last month - about 8%. Analysts believe that inflation in both countries has significantly imported nature.

India and China are experiencing the surge of world oil prices very painful, since they cover the most of their needs of "black gold" at the expense of imports.

Beijing and Delhi were holding back for a long time domestic prices of fuel, but on the reverse of the medals were the losses of national petrol manufacturers.

Indian company "Indian Oil" for the first time since 2006 ended the first quarter with losses of 4.14 billion rupees / 96.5 million dollars. Losses of Chinese "PetroChina" in the sphere of pertrol manufacturing for 2007 reached 20.68 billion yuans / 3 billion dollars. Ultimately, Beijing and New Delhi were forced to adjust their energy policy.

In early June Indian authorities increased the cost of fuel, including that of petrol by 11%. The Chinese government made a similar move last week. Since June 20 the price of petrol, aviation kerosene and diesel was increased to 15%. The authorities announced that since 1 July they would increase electricity rates for the majority of industries, too.

In the fight against inflation Beijing and New Delhi lay down mostly on the reinforcement of monetary control.

Chinese Central Bank has not yet increased the main interest this year, currently it is 7.47 percent a year, in return it has already increased five times the mandatory rate of reservation of commercial banks / the last time in June by 1% up to the record 17.5%.

Indian Central Bank on June 12 for the first time in 15 months increased the interest rate by 0,25% to 8%, and this is only the beginning.