BBC News reports that India has announced a sharp rise in the price of diesel, the first increase in more than one year, in an attempt to cut the country's budget deficit. There is concern over the Indian economy and the potential for credit rate downgrading. 14% rise when you live in poverty is a huge hike though.
"The government said it would raise diesel prices by 14% from Friday. India subsidises the prices of diesel, cooking gas and kerosene oil to help the poor and keep inflation in check. However, this has resulted in a growing budget deficit and there have been concerns the policy may be hurting India's overall economic growth". Follow the link to read more.