Reasons of Iflation In India

Y

yummy1984

Par 100 posts (V.I.P)
The inflation rate (WPI) is 7.31% for the month of December, 2009 as compared to 4.78 % for November,2009.There are different reasons that can account for the inflation in our goods and services. Everyone is talking of 'Inflation' but it is worth looking at what exactly inflation is, and how it arises. What could be the reasons for Inflation in India now?

THe MAjor deciding factor may be: .
  • Increase in Cost of production
  • demand outstripping supply
  • Surplus Currency
  • Goverment's and Polical Failure in controlling corruption and management of Food articles.

Kindly add comments with your opinion..

Thanks
 
As lot of farmers are losing ionterest un agriculture the products are beomeing scarce and these are leading to more prices
 
corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption corruption
this the only problem.
 
surplus currency..hmmn... i doubt that..

there is a chain of events which causes increases in prices at each stage of production which no doubt is transfered to the consumer......
 
The reason could be the major failures of state policy. Domestic food production has been adversely affected by neoliberal economic policies that have opened up trade and exposed farmers to volatile international prices even as internal support systems have been dismantled and input prices have been rising continuously.
 
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