Apr 6, 2008

Inflating to 7%

So what is driving the current inflation in India? It is way above the comfort zone of 4.5% just like last year.

  • I think the supply of basic commodities are well enough but there is a speculation or assumption that we are going to run low. Likewise, the global commodity prices will also have an impact. No wonder why Milk & vegetable prices are up.
  • Did you see the gingiley oil prices recently? It has gone up from like Rs 100 to around Rs 160. Is this purely to do with the crude oil price increase?
  • Obviously the per capita income in India has gone up & hence, the demand has also increased.
Let's see how Government is going to react.

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