Commodity prices hit India’s inflation battle: Pranab

[xchrom]

http://www.firstpost.com/politics/commodity-price-hit-indias-inflation-battle-13498.html

Mumbai: India would not move out of its inflationary woes anytime soon as high global commodity and oil prices continue to impact the fiscal health, said Finance Minister Pranab Mukherjee today in Mumbai.

“We are told that there could be pressure on commodity prices because of shortage in production of certain essential food items,” Mukherjee told reporters on the sidelines of the 63rd annual general body meeting of Indian Banks Association. “When there is uncertainty in the global markets, particularly on those products for which we have to depend through imports, naturally it would affect.”

He said, “Inflationary pressures have no predictability or a certain direction. Like in 2008 when oil and commodity prices shot up and then declined drastically, commodity prices remain unpredictable today. It is too unpredictable, nobody can comment on how these will behave.”

Hinting on the remedial measures, Mukherjee said, the government along with the Reserve Bank of India are tyring to achieve higher growth and bring down inflation to acceptable level.




me: japan re-enters recession, the u.s. & india may experience a period of stagflation.
maybe the rupture isn't such a bad idea.

[madrchsod]

1. commodity prices are going even higher because...

the excess rainfall in the grain belt,the destruction of the spring crops in the south, and the disruption of barge traffic in the us inland waterways.