New Delhi: The hike in prices of petroleum products, including diesel and cooking gas, is likely to have upward pressure on inflation, that crossed 9 per cent mark in May, experts said.
"It (the hike) will increase inflation by about 50-60 basis points," Crisil chief economist D K Joshi said.
With volatility in crude oil prices in global market, the hike in petroleum product prices was widely expected.
"Inflation was being artificially suppressed (as the price hike was being delayed," Joshi added.
Experts said that hike in price of diesel, kerosene and LPG would only increase the inflationary pressure on the economy. They said headline inflation in June is likely to cross 9.5 per cent.
Reacting on increase in rates of petroleum products, the Left parties said they will organise nationwide protest against hike in prices of diesel, kerosene and cooking gas.
They said the price hike was "completely unacceptable".
Overall inflation rose to 9.06 per cent in May from 8.66 per cent in the previous month. Food inflation for the week ending June 11 had touched a two-and-a-half-month high of 9.13 per cent.
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