The Financial Times has a lead article on India’s rising inflation. The wholesale price inflation today (June 13th, 2008 ) hit a seven year high of 8.77%. This figure has crossed the anticipated figures by most economists and has got most policy makers tied up in knots over the impact on the economy. The major cause people attribute to the inflation is the rise in crude oil prices and to the rise in food prices. The increase in food prices in India has followed the international trend with around a 30 to 50% increase in the prices of commodities like rice, lentils, vegetables and milk.
The global food crisis which has been in the media for a while now has prompted many reactions from across the spectrum of observers. Policy makers in the government have gone on to increase price controls on food commodities to control the spiraling food prices leading to greater regulatory architecture coming into the market. Other reactions which have come to the media, mainly because of their comical nature, is the assertion of President Bush that food prices around the world are increasing as Indians are eating more!
The global food crisis which has been in the media for a while now has prompted many reactions from across the spectrum of observers. Policy makers in the government have gone on to increase price controls on food commodities to control the spiraling food prices leading to greater regulatory architecture coming into the market. Other reactions which have come to the media, mainly because of their comical nature, is the assertion of President Bush that food prices around the world are increasing as Indians are eating more!
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