Inflation
INFLATION - ITS CAUSES and ITS EFFECTS ON VARIOUS SECTORS ON INDIA - September 2nd, 2010
WHAT IS INFLATION
Defination:
Inflation is defined as the rate at which the general level of prices for goods and services is rising and subsequently purchasing power is falling
Measures of Inflation
Inflation is measured by calculating the percentage rate of change of a price index, which is called the inflation rate.
Consumer price indices
Cost of living indices
Producer price indices
Commodity price Indices
Causes of Inflation in Current Scenario
Global imbalance the cause for global liquidity
The psychological dimension
Higher international farm prices impact Indian farm prices
Growth and forex flows
Steps taken to control the current inflation * A well planned, reasonable and balanced intervention by the government people have to understand the facts and logistics of price inflation. * The public distribution system has to be geared up
INFLATION IN AIRLINE INDUSTRY * One major issue is cost of Aviation Turbine Fuel * Companies prefer to ground flights * Prefer paying parking charges of Rs 50,000 per hr rather than keeping a flight in air which costs Rs 3,50,000.00 per hr * Job cuts in airline industries on a rise
INFLATION IN BANK * The RBI may go for further monetary tightening in the light of rising inflation * Yields are rising, compelling the banks to raise interest rates, which will hamper their business growth * Inflation concerns remain high with finance ministry officials indicating the rate could go up to 13 per cent in the near term
EFFECTS ON INFLATION ON AUTOMOBILE COMPANIES IN INDIA * The automobile sector is also suffering because of soaring raw material prices * The automobile sector is also suffering because of soaring raw material prices * The automobile sector is also suffering because of soaring raw material prices * The two-wheeler
WHAT IS INFLATION
Defination:
Inflation is defined as the rate at which the general level of prices for goods and services is rising and subsequently purchasing power is falling
Measures of Inflation
Inflation is measured by calculating the percentage rate of change of a price index, which is called the inflation rate.
Consumer price indices
Cost of living indices
Producer price indices
Commodity price Indices
Causes of Inflation in Current Scenario
Global imbalance the cause for global liquidity
The psychological dimension
Higher international farm prices impact Indian farm prices
Growth and forex flows
Steps taken to control the current inflation * A well planned, reasonable and balanced intervention by the government people have to understand the facts and logistics of price inflation. * The public distribution system has to be geared up
INFLATION IN AIRLINE INDUSTRY * One major issue is cost of Aviation Turbine Fuel * Companies prefer to ground flights * Prefer paying parking charges of Rs 50,000 per hr rather than keeping a flight in air which costs Rs 3,50,000.00 per hr * Job cuts in airline industries on a rise
INFLATION IN BANK * The RBI may go for further monetary tightening in the light of rising inflation * Yields are rising, compelling the banks to raise interest rates, which will hamper their business growth * Inflation concerns remain high with finance ministry officials indicating the rate could go up to 13 per cent in the near term
EFFECTS ON INFLATION ON AUTOMOBILE COMPANIES IN INDIA * The automobile sector is also suffering because of soaring raw material prices * The automobile sector is also suffering because of soaring raw material prices * The automobile sector is also suffering because of soaring raw material prices * The two-wheeler