Along with growth comes inflation and soon inflation takes over and ultimately destroys growth. Currently inflation is hovering around 8%. Whom does it affect ? Who are the worst hit ? What is currently contributing to high inflation ?
Inflation affects everyone . Money loses purchasing power so rich are actually becoming poor and the poor cannot afford basic necessities in life. Until recently FII investment money and software export/growth was increasing money supply and increasing inflation. At present, increasing price of oil has contributed to inflation. This has resulted in increased input cost for almost all goods . There is increasing demand for oil across the globe with not enough new supply.
How is India going to tame inflation ? How are we going to reduce our dependency on oil ?
Saturday, May 24, 2008
Inflation nightmare
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india thinking
U would be surprised that Indias inflation was around 6.8% which is almost at par with UK and Frame for 2008. With oil prices being a key factor in inflation rates. rest is all hype created. well demand and supply rules apply..and required for the only democratic ecomony with more than 1bn people with only 28% paying taxes!!!!
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