Monday, March 15, 2010

Indian inflation is real nasty

One will never see such articles in India's self censoring media. Editors and columnists think that the big three of Indian finance are demi-gods like Tendulkar or SRK. Not to mention leaders in the opposition who have their head stuck in the 19th century. Here is what is happening to the salary of the Indian citizen. Link

Factory gate prices are not a true reflection of cost-to-consumer, but these WPI figures, as the best available data, seem to indicate that the Singh Administration grossly underestimated the potential for inflation as the desired stimulus led output and investment gains have exacerbated the agricultural complex after last year’s disastrously dry monsoon season. The public assurances of Singh’s administration and Central bank Governor Subbarao that food prices will moderate in the new year (March to March) is meaningless if this year’s monsoon rainfall disappoints. Note that ,with agriculture accounting for nearly 20% of GDP but employing over half the population, water is the most volatile commodity in the Indian economy. indian inflation


vinod said...

Guys - Have created a mailing list for Housing Consumer Interest group in India.
The objective is to augment the good work being done by sites like this by creating a mailing list where group members can take up meaningful initiatives counter propoganda and to help consumers.

Anonymous said...

Good one Vinod. See you there...

BTW, this propaganda of govt. that the inflation is due to drought etc. BS speak.

Inflation was already galloping in 2005 and 2006. Prices of all commodities have been touching the sky. But the govt. has been manipulating the data by talking about WPI and manipulating the numbers that constitute WPI. In real terms, the cost of living is already fantastic and phenomenal. So for the govt. to say it will come down soon is nothing but an empty palliative.

This govt. is hands in glove with the rich industrialists and the chor builders. This govt. has to go soon....period!

rajni sharma said...

Hey this is really very nice post...
Nd one of your best post...Thanks
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