Hey inflation rate is going really high .....what do u think where is it heading????

Question

i read that it just touched 11.05 n its been the highest in last 13 yrs....i read at http://www.utvi.myrecourl.com

Answer 1

Up and up and up, until it collapses like in 1939.  If you have $100 to spend, irrespective of prices, you can only spend $100.  Music, books, DVD's, magazines will be the first to fall.

(Very little sales)  And if the bank repossesses your house, what are they going to do with it?  Nobody has money to buy it.  Even on special.  If the thing that is on special, is not needed, or the market flooded, I won't buy for a cent.

Peace.

Answer 2

Yes, this is a very big concern.

I guess the RBI making a high repo rate  and CRR will take away the excess liquid cash in the market. But i think this will impact bad on the thousands of ppl who have taken home/car loan of floating rates.

Also, the govt. cant do much abt  the price of Oil which is v high, And we dont see any signs of getting it down.

I think easing the sales tax of petroleum can ease some price.

and above all we  need to use the resources very efficiently.  I guess the govr should ban the cars using diesel. The MP and PM should cut the travel, it invloves many cars, jeep etc.

Well there can be hundreds of ways, but the botom line is to use the resources properly.