Inflation

If the Finance Minister is to be believed then everything in the Indian banking sector is hunky dory. The banks have enough cash and the RBI is doing a wonderful job. At least, that’s the impression one would have got if he or she were present at a press conference addressed by P.Chidambaram earlier today. Cynics have already pegged this estimation as a deliberate lie that misguides people about our banking system making out the case for Indian banks to be as bad as faced by banks in the US.

Both arguments are valid but on this count it’d the Finance Minister’s statements that have turned out to be more accurate. Indian banks aren’t as comfortable as he says they are but they definitely have an ample supply of liquidity to power the Indian economic engine.

The movement of oil prices in the world markets has brought about the setting in of some important changes. Free markets like the United States or the Socialist ones like India have had to accept the fact that the very structure of the world economy is changing. We once viewed the 100 dollars per barrel of oil as an indication to push the panic button but after everything that has happened in the past one year there is an inclination to believe that this figure despite being regarded as ‘high’ is still a ‘realistic’ expression of the oil scenario.

By: Bharat Ratna

• Inflation rises to 11.05% from its previous rate 8.75% which is 13 year high after the fuel prices hike

• Stocks Markets down drastically, SENSEX down by 3.42%, NSE down by 3.48%

• RBI may take more measures to tame inflation and further tighten the monetary policy, possibly by increasing REPO rates

• Finance Minister Mr P Chidambaram said, Fuel hike led to double digit inflation
  
  

Aditya Rao

Inflation figures for the past week showed that the inflationary disease had grown to an astounding 11.05%.A dramatic rise of almost 3% from the previous week. So the question must be asked how come you’re still paying more only for food products and fuel but the exact same price for consumer and retail goods?

The answer is in the fine print.

Granted, some goods do cost more than before like mosquito repellant or moisturizing lotion but most

By: BHARAT RATNA 

Inflation is a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index but it is not uniquely defined because there are various price indices that can be used.

Aditya Rao

Singh: Inflation Here to StayThe Prime Minister has finally stopped beating around the bush. He isn’t making statements like “Expect inflation to come down next week or in 15 days.”

That’s the one thing investors and economically aware people have been asking for quite a while. A certain degree of truth motivated by facts and figures and not politically diluted arguments made with one eye on the elections.

Aditya Rao

There’s a reason inflation the past week rose to 7.61% despite the government trying it’s best to make sure it shouldn’t be that high.

Inflation in India is usually a phenomenon that occurs when the supply of a product is significantly lesser than its demand. But the case today is that you are probably walking into a store, finding an ample supply of what you need and in turn paying more for it!

Don't think about what the market's going to do; you have absolutely no control over that. Think about what you're going to do if it gets there