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what's the main reason of inflation in India
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TOPIC: what's the main reason of inflation in India

what's the main reason of inflation in India 5 years, 9 months ago #243

  • arun
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it is due to the implementation of 6 pay commision or increase in the income of the customers.or due to corruption..what u say about this...

Re: what's the main reason of inflation in India 5 years, 9 months ago #247

  • aamir
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current inflation is mostly supply propelled. due to sixth pay commission and various fiscal sops offered by government like NAREGA the purchasing power have increased substantially. and the pathetic supply chain passing through corrupt middlemen has also propelled inflation and particularly food inflation. the steps taken by RBI are ridiculous. going for hike in interest rate is not going to solve this crux. it's not demand propelled inflation. anyone having basic knowledge of economics will understand this situation. rbi should stop playing this game and government has to take some long term measures. the need of hour is to maintain balance between growth and inflation. common man is blaming government for inflation but at the same time they are not ready to accept that it's mainly because of increased purchasing power.

Re: what's the main reason of inflation in India 5 years, 9 months ago #248

  • sheetalm
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increase in fuel price is resulting in prices of essential commodities increasing and this compounded with increased ppp is causing the inflation to go up with no sign of coming down

Re: what's the main reason of inflation in India 5 years, 9 months ago #249

i think inflation is not going to come down in the near future as the crude prices are going to up from here. With middle east crises spreading across many oil producing countries, crude prices will further go up. Egypt, Libya are already burning, now there are signs of upheaval in neighboring countries also. This not helping India's cause...

Re: what's the main reason of inflation in India 5 years, 9 months ago #251

I disagree with what sushant says..Inflation is not rising just because of rise in fuel price.Yes it a reason but not the only one. The easy availability of money in the market is stoking inflation and so is the increase in government spending...So as a result there is a lot of money in the market which is chasing the goods whose supply hasnt changed which is ultimately causing an imbalance.
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