Is there any chance of inflation coming down?

Question

When? what can we do?

Answer 1

inflation will come down somewhat when the Fed switches from lowered interest rates (to bankers) which cause inflation by expanding the money supply.  Because it has finally dawned on them that inflation has collapsed the dollar, that reversal will come fairly soon.  Unfortunately, this will complete the fall into recession, and soon afterward into depression.  

We can thru congress remove those manipulative powers from the Fed, but it has to happen real soon, and it's not gonna happen unless the media asks the DemReps hard questions, but by then it'll be way too late.

Answer 2

Unperturbed by the 45-month high 8.1 per cent inflation, economists are confident that it would come down to six to 6.5 per cent in three to four months period, bringing relief to the common man.

Inflation is expected to come down to reasonable level by September-October. The downward trend will be seen in the next two to three weeks period, Economist Intelligence Unit Director (Research) Manoj Vohra told PTI here today.

Inflation will not sustain at eight per cent, but stabilise at six to 6.5 per cent in the coming weeks, Vohra said.

The government has done reasonably good job to curb inflation and it will show positive results, Vohra said.

Economists also opined that the inflation may start easing with the onset of monsoon in the country.

Inflation will see downward trend with the agri-commodities prices starts falling following onset of monsoon, Multi-Commodity Exchange Chief Economist V Shunmugam said here.

Foreign lender, HSBC's India head, Naina Lal Kidwai, had said that the high inflation is likely to moderate in the short term, given good monsoon expectations and owing to the fiscal and monetary measures adopted by the policy makers.

"The inflation is likely to ease in short-term as monsoon expectations are good. Also, the measures taken in the monetary and fiscal sides might take some time to show results," Kidwai said.

Inflation will come down to around six per cent, Shunmugam said.

The solution to curb inflation would be to have an advance indicator of price rise and their origins so that the root causes can be better addressed. That is to prevent inflation from occurring rather than trying to cure it after it starts mounting, Shunmugam added.

High oil and food prices, rising wages, the governments Sixth Pay Commission that has recommended large increases in civil servants wages and a wider than expected fiscal deficit as a result of generous pre-election spending will all stoke inflationary pressures further this year.

In his annual policy statement at the end of April, the Governor of the Reserve Bank of India, Y V Reddy, said the central bank will endeavour to bring inflation down to 5.5 per cent in FY 09, with a preference for lowering it to close to five per cent.

We are seeing global inflationary phase, economists said. In fact, inflation has suddenly spurt-in many countries of the world and in some developing countries like Sri Lanka, Bangladesh, Pakistan, Indonesia and Philippines.

Besides, the increase in the prices of essential commodities have been very high, with food and fuel prices soaring, inflation topped eight per cent in the Philippines and nine per cent in Indonesia.

Even Japan, which suffered nearly a decade of deflation, last month reported that inflation hit a decade-high.

Oil rich countries of West Asia too are unable to explain the unprecedented increase in the prices of essential commodities to their citizens.

Apart from India, other BRIC (Brazil-Russia-India-China) countries are also facing the menace of inflation.

Answer 3

historically, inflation has fluxuated but at inconsistant rates. Inflation typically is associated with a recesion but it is not directly related. Inflation is basically a result of too much money in circulation and not enough demand for those dollars.

Tell the government to stop spending money it doesn't have and you can work to solve the problem.

Answer 4

America has a very very very slim chance of doing that. we are in an inflaion because we are in 12 trillion dollars in debt. when we accumilate that much debt the value of our dollar goes down and the prices of everything goes up. we must frist have to stop that war because we spend biliion of dollars on it every month. If we dont do that soon and i mean soon then America will go bankrupt and we will fall as a nation...scary i know just watch msnbc

Answer 5

Inflation is on its way down.  The Fed has stopped lowering rates and just yesterday (6/9/08) Chairman Bernanke signaled that the Fed might even intervene in the currency market to strengthen the dollar.  To do that the Fed would buy dollars with its foreign currency reserves.  The reduction in the supply of dollars would lead to a decline in the dollar price of goods.  This would bring the price of oil down, because oil is priced in dollars.