With yesterdays increase in diesel prices, it is set that inflation in India will rise even further. Diesel is the fuel used for all transportation , by farmers.
So , even though the prices of petrol did not move up- this move will hurt households even more. Food inflation is not going to come under control any time soon. Even on thursday , the finance minister was also quite surprised on the inflation numbers.
What happens next, with the inflation not being in control any time soon, we will continue to see the RBI increasing interest rates and the India growth story slowing down.
The problem of inflation is because of supply side constraints. The TOI recently had an article where the FCI ( food corporation of India) did not have any place to store the foodgrains -- and with the monsoons coming into india anytime, we will have wasted a lot of food and further aggravate the food inflation situation!
If only the government and its bodies were not so corrupt. With most of the money being spent going into the hands of middlemen ( last stats was that only 20% reaches the actual user), we will continue to face such situations in the future.
We need to stop this rot in India soon- else we all can forget about the India story- India will once again be a "Has been " story.
best of luck!
(dont forget to subscribe using the links on the right)
So , even though the prices of petrol did not move up- this move will hurt households even more. Food inflation is not going to come under control any time soon. Even on thursday , the finance minister was also quite surprised on the inflation numbers.
What happens next, with the inflation not being in control any time soon, we will continue to see the RBI increasing interest rates and the India growth story slowing down.
The problem of inflation is because of supply side constraints. The TOI recently had an article where the FCI ( food corporation of India) did not have any place to store the foodgrains -- and with the monsoons coming into india anytime, we will have wasted a lot of food and further aggravate the food inflation situation!
If only the government and its bodies were not so corrupt. With most of the money being spent going into the hands of middlemen ( last stats was that only 20% reaches the actual user), we will continue to face such situations in the future.
We need to stop this rot in India soon- else we all can forget about the India story- India will once again be a "Has been " story.
best of luck!
(dont forget to subscribe using the links on the right)
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