Mr, bittertruth seems like you know nothing. here is whats going on:
Inflation has nothing to do with current situation. Beacuse of euro crisis investor are selling everything and buyng dollar. so the dollar is trading on 80.57 which is 1 year high. That sent euro to 1.29 which is below technical level 1.30. when dollar goes up all the comodities comes down. We have already seen this week gold has come down 200 dollar and wheat, coffee, cotton, and other comodities are plummting. Because of huge safe investment going in dollar  rest of the currency are devaluating  so the ruppee. This can continue even further if european doesn't come with clear solution to their debt mess.
write me more if you want to know about investment and how the currency and the market trades.