Why is inflation so high and rising in India in the past few months?

Question

Why is inflation so high and rising in India in the past few months?

Answer 1

greed...

Answer 2

This is the impact of the following:

1. Rising crude oil prices and the downstrean products of refineries most of ewhich are piced in the open market.

2. The shortage of foodgrains output in some major countries

3.The hike in petrol, diesel and cooking gas prices recently effected by the Govt. (justifiably).

4. Infrastructural bottlenecks due to delays in the Govt process of approval and spendinmg

5. High rate of increase in the salaries of Govt. employees stoking aggregate demand.

6. Slow down in investments in the past years leading to shortge of capacities in some industries which have reached high rates of capacity utilisation

7. Higher generation of black money generation during the years when to manny elections are held close to the national election. The incidence of corruption purchased by bribes have gone up.

Answer 3

Its as simple as this, inflation occurs when the value of an item stays the same but the price increases. And the fact that diesel fuel has become so high in demand - the price has gone up 100% in 12 months but the amount of grain in a kilo of grain is still the same kilo it was 1 year ago. Except now it costs alot more. The inflationary affects then drickle on to every item in the market place.