Web Analytics Business News This Week Rising Food Prices Vs Negative Inflation in India | Business News This Week

Oct 8, 2009

Rising Food Prices Vs Negative Inflation in India

IN · · Leave a Comment
Which one more concerns you the rising prices or the negative inflation rate in India? Well, as per the definition and mechanism of Inflation it is said that inflation is a 'state where prices of goods & services rise and value of money decreases'. Is that true? The inflation is a state where the price of goods and services rise.

It is very typical in India, that the inflation rate shows negative or equal to zero, but the food prices rise often. The prices of essential goods and services rose significantly. Whereas if you consider the inflation rate as the mechanism as the basis for the judgment for change in the price, you will not reach conclusion certainly.

In India the annual inflation is equal to zero or negative some times, but the prices rose by more than 15 per cent as comparing to last year. There is no decline in the prices of goods in India, no matter where the inflation rate point was. The current prices in Indian market are high may be due to hoarding or bottleneck. Whatever the case may be its the people those forced to spend more in order maintain their livelihood.


Post a Comment