environment Articles

Inflation continues to annoy (12-07-08)

The gradual increase in the rate of inflation has brought the whole of India and its government to an extremely uncomfortable position. The truth is that each and every strata of the society, especially the middle class and downtrodden people, are its worst sufferers. The recent ascension in the rate and to a high 11.89 per cent for the week ended June 28, 2008 makes the environment more anxious.

But it seems that there is no such immediate respite from this since the stage of 9.5% inflation has long been crossed and it goes forward unwaveringly. What is more it is expected to touch the figure of 11.9% next week ended July 04, 2008. It should be noted that India faced the 11.63 per cent Inflation for the week ended June 21, 2008 but more disaster is yet to come since to Finance ministry inflation could inch up to 13 per cent before making a slow descent.

Well, when this is inevitable then we can at least think, for a while, of its causes. But indeed there are many. So it may be difficult to contemplate where to begin? In any economy when market suddenly gets strengthened and starts moving faster the demand increases by leaps and bounds. But in the later half the supply fails to gratify the rising aspiration that gives birth to forged crisis. This is also joined by the mounting prices and as a result inflation increases.

In the present context the increasing prices of crucial commodities like steel play a greater role. There is a distinct but profound estimation that steel and steel products form about 21 per cent of the inflation, while an assortment of other subjects contribute to the remaining portion.

Though the Finance Minister announced that the government was relying on monetary policy to mitigate demand and steady prices, there is hardly any faith of this.

Source: http://timesofindia.indiatimes.com/Inflation_soars_to_1189/articleshow/3221464.cms

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