This weeks inflation numbers confirm the doubts I posted in my last entry. With the cheaper credit being available in markets, inflation figures have started moving north again. And now as the PLR is being cut by PSU banks to make loans cheaper, it will make sure that inflation stays put.
On the other hand, the petrol and diesel prices have been reduced to 45 % of what they were 3-4 months back but there has not been any cut in Indian markets. Now, if you pay a little attention you will see that trucks that carry all the common goods run on fuel. And if the fuel prices are high then goods prices are going to be high as well because the transportation costs are high and these will be passed onto the consumers.
Citing this as a simple example, does it not make sense to cut the fuel prices to relax the inflation?
But as always Indian economy follows a lag routine.
The Anti-Broker Movement!
14 years ago
1 comment:
I feel that inspite of worldwide cut in fuel prices, let the prices remain as it is in India provided that the revenue generated through these be utilized for other development projects and the most wanting of all currently is in the infrastructure domain and as you have said in Nov 7 post..provide more affordable housing. The common man won't mind paying 10 rupees extra per liter of fuel provided he gets jam-free roads and cheaper accommodation.
Post a Comment