Waht is the reason for the recent inflation in india?

Question

Waht is the reason for the recent inflation in india?

Answer 1

Main reason may be oil prices it has gone from $ 60.00 t0 $143.00 in just few months.

Other:

Supply and demand, shortages increases the prices of various consumables and that in turn causes the inflation.

Global warming may cause crops to fail and lead to higher price of food.

See if you can come up with few other reasons,----,---.

Answer 2

I don't want to blame some one in particular but its all because of the silly government.

The root cause of all is fuel. The value of a product is calculated on the basis of what had been spent on it. Transportation plays a vital role. When fuel prices are hiked everything gets affected. Be it a safety pin or a road roller.

So the govt. have to concider the basic things shouldn't be affected.

Answer 3

News has just ‘flown in’ that Inflation is up to 11.63 % !! With the world heading towards recession, and oil prices booming, inflation is bound to come. RBI responded last week by raising repo rate from 8% to 8.50%. The Reserve Bank also hiked the CRR (percent of deposits of banks kept with RBI) to 8.75% from 8.25%.

The G8 countries are to meet soon and obviously, this growing inflation will be on everyone’s mind. Moreover, World Bank president Robert Zoellick has urged the G8 nations to work in tandem with OPEC countries to reach some decision/action to curb rising oil and commodity prices. ECB has already taken the bold step of raising interest rates from 4% to 4.25% to curb inflation(which has touched 4% in Europe - a high value, keeping in mind, their target of 2% inflation).

But are these measures enough?? Inflation has more factors than just a single-dimensional reason of interest rates. Take for instance, oil prices. Supply Demand are not the only essentials to it…even increased output did not push down prices, as I had written 2 weeks back.

Food crisis is also fueling rapid inflation. Prices of rice and wheat globally have gone up atleast by 2 times. Most developing countries were hit, with the African nations being the worst-hit victims. Food crisis was also not only triggered by increase in consumer demand in India and China, but by global practices of food use. Per capita food consumption have actually decreased in India and China.

Read more on the food crisis and also effects of truck strike on Indian economy and increasing inflation >>

Answer 4

main reason may be oil price

but rise in the oil price id due to the change in the us dollar

comedy thing it does not have nothing to do with INDIA but changes in the us dollar

it is likely to be like discrimination on INDIA

Answer 5

food

Answer 6

High rates of taxation & compexity of tax rules which ordinary citizens can't understand to comply with. Thanks to our FM and his team.