| Author: kannan 25 Aug 2008 | Member Level: Gold | Rating:  Points: 6 |
The inflation rate is one of the most important economic forces consistently weighing on the value of a nation's currency.
Inflation, a term used to describe the erosion of value in purchasing power for a nation’s currency, is one of the greatest threats and dangers to your wealth and standard of living. As an investor, there are several ways you can try to lower the damage, including buying companies that earn high returns on capital and products that people need to buy to survive. No matter how bad the economy gets, people will still want to eat their regular breakfast cereal and brush their teeth.
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| Author: sibasish 27 Aug 2008 | Member Level: Gold | Rating: Points: 6 |
Aggregate shocks that move output and inflation in opposite directions create a tradeoff between output and inflation variability, forcing central bankers to make a choice. Differences in the degree of accommodation of shocks lead to disparate variability outcomes, revealing national central banker's relative weight on output and inflation variability in their preferences. We use estimates of the structure of 23 industrialized and developing economies, including nine that target inflation explicitly, together with the realized output and inflation patterns in those countries, to infer the degree of policymakers' inflation variability aversion. Our results suggest that both countries that introduced inflation targeting, and non-targeting European Union countries approaching monetary union, increased their revealed aversion to inflation variability, and likely suffered most increases in output volatility as a result
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| Author: Kathirvelu 27 Aug 2008 | Member Level: Gold | Rating: Points: 6 |
The Inflation many-times occur from without, like the sudden rise in oil prices which has a multiplier effect all the way down the chain - higher energy cost means higher production costs, means higher product prices.
Govt too has its share of blame - it's directly responsible for the miserable state of the agriculture sector, especially with its outdated, outmoded socialist policies still prevailing. There's no way the millions of farmers can make a living from their tiny land-holdings. These folks need to move to steady, better-paying jobs in other sectors like services, manufacturing etc, and allow for consolidation of landholding to minimum 10 acres which will actually benefits of economies of scale, especially if there's come kind of producers co-op in place, not just in production, but also in marketing.
The need of the hour is land, labor and agriculture reforms which will not just grow the economy, but create jobs in other sectors that will allow marginal farmers to get steady better-paying jobs.
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| Author: sibasish 29 Aug 2008 | Member Level: Gold | Rating: Points: 6 |
IN SPITE of very popular budget and bonanza for government employee, UPA government is trying hard to save its face for increasing inflation. Increasing inflation is a big worry for government because there are many state elections scheduled in this year and the government has to face general election next year.
The aim of government was to present itself as a common man helper by giving wavier for farmer. Annual budget 2008-2009 is called ‘Aam admi ka budget’ – budget for the common man. But this inflation rate has put government on back foot.
Regularly, hiking prices of food and commodities have increase inflation rate. In last week of March, inflation rate reached at 6.68 per cent, the highest in 14 months and higher than reserve bank comfort level of five per cent.
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| Author: nagaraj 01 Sep 2008 | Member Level: Silver | Rating: Points: 3 |
Inflation rate is increrase because the political leaders are not taking proper decision in solving problems. I say that the inflation raises all due to the political parties only.....
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| Author: ankit 02 Sep 2008 | Member Level: Gold | Rating: Points: 6 |
There has been a lot of speculation of commodity trading being the root cause of inflation whereas it is mainly attributed to the sky rocketing of crude prices beacuse crude is a part of every process from sourcing the raw material till the finshed goods reaching the consumer.Thats the prime reason for inflation of food items increasing.
Secondly,commodity trading infact in a way help in moderating the prices by effectively balacing itself through frequent buying and selling.Yes,i agree this does arise speculation but commodity trading cannot be blamed for rising inflation.
The governments lack of forseeing things and not acting on them at the right time is the cause for inflation.
With the farm loan waiver and central pay commison the government has strippd itself of cash and that has meant tigheting of the monetary policies
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| Author: Kathirvelu 02 Sep 2008 | Member Level: Gold | Rating: Points: 1 |
Government mulls releasing WPI inflation data on the 15th of every month from now on...
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| Author: Kathirvelu 02 Sep 2008 | Member Level: Gold | Rating: Points: 4 |
Crude cooling off will have a positive impact on inflation and interest rate sensitives...
The market has rallied as it got good cues, the appointment of the new RBI governor who is supposed to have a pragmatic approach to policies and crude slipping, he says. Crude was going up on lack of any fundamentals and now money is being pulled out of crude and getting into dollar and equities
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| Author: Kathirvelu 02 Sep 2008 | Member Level: Gold | Rating: Points: 2 |
Indian inflation is directly correlated to the price of crude oil and this fall in crude prices will result into a positive rally in September...
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| Author: ankit 02 Sep 2008 | Member Level: Gold | Rating: Points: 5 |
The hard fact of the Inflation is that there is a chance that the inflation numbers have been manipulated off late.Otherwise,the ever increasing Inflation cools down to 12.44% from 12.75%(not too sure of the numbers) on the week that congress gets the trust vote.There were no global cues favouring a low inflation and the food price index also was the same.But still the inflation numbers managed to go down.Strange.Isn't it
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| Author: Sandy 02 Sep 2008 | Member Level: Diamond | Rating: Points: 4 |
Its not manipulation Ankit as we all know the inflation was shooting up and the main culprit was oil and food products, though other segments like chemicals and manufacturing products added fuel to the fire. After monsoon it was expected that inflation will cool as production of food products increases and crude also supported thats why we saw a fall.
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