Inflation in India

The industrial houses as well as the policy makers are all worried with the constant increase of the inflation in India since March of 2008. In economics, inflation refers a general increase in the prices measured against a general level of the power to purchase. In earlier times this term used to refer to increase in money supply. This is currently referred as monetary inflation or expansionary monetary policy. The measure of inflation is measured by comparing two sets of goods at different times. The computing for the increase in the cost which is not reflected by increase in the quality is carried out. The various measures of inflation depend on the particular circumstances. The most popularly known method is the CPI. In this method the measures are the consumer prices, as well as the Gross Domestic Product (GDP) deflator. In this way the total domestic economy is measure. The prevalent view for economics (mainstream) is due to the interaction of the supply of money with output and interest rates. The views of the economists are broadly divided in two campsthe "monetarists" and the "Keynesians".

The related concepts for calculating inflation of a country comprise deflation, disinflation as well as hyperinflation. Deflation is in general the falling level of prices. The disinflation and the hyper-inflation are all important aspects while calculating the inflation rate of a country.

Inflation Rate in India

The inflation rate in India was last reported to be 9.72 percent in September of 2011. Since the year of 1969 till the year of 2010, the average inflation rate in India was 7.99 percent. The inflation rate of the country reached an historical high of 34.68 percent during the month of September in the year of 1974. The lowest was recorded in the month of May in the year of 1976. It was reported to be as low as -11.31. The inflation rate in general refers to the rise in the prices measured against the purchase power at a standard level. The best known measure of Inflation is the CPI which measures the consumer prices. The GDP deflator also measures inflation in the total domestic economy.

India Inflation Rate Chart (in %)

Year Jan 2011 9.35

Feb 9.54

Mar 9.68 8.03 7.87

Apr 9.70 8.70 7.81

May June July 9.56 8.63 7.75 9.44 9.29 7.69 9.22

Aug 9.78

Sept 9.72 9.82 9.77

Oct 9.70

Nov 8.33

Dec 9.47

2010 16.22 14.86 14.86 13.33 13.91 13.73 11.25 9.88 2009 10.45 9.63 2008 5.51 5.47 8.33 9.02

11.89 11.72 11.64 11.49 13.51 14.97 10.45 10.45 9.70

Inflation in India in Future It is expected that the emerging markets, including India, will perform well withstanding challenges like higher inflation as well as the rising prices of the oils. It is assumed that the price of the commodity will continue to maintain the upward march since the developing countries are maintaining a very strong growth momentum motivated by the by robust consumption. The emerging markets will continue to do well. The strong growth momentum is accelerating the growth. Indian economy is expected to grow at 8 percent in this fiscal year 2011-

12. The developed markets are growing at the rate of 1.6 percent. The emerging markets are experiencing the bull nature. The bear nature is short-lasting in these economies. This bull phase is going through a 20 year high. The growing price of oil in the country is the factor behind the growth of the price of all other commodities in India.

Food Inflation in India in March 2011 Food inflation reduced to 9.32 per cent for the week ended October 1, 2011 from 9.41% in the previous week. The prices of onion dropped by 10.2% from a year earlier while wheat prices dropped by 0.2%. Pulses, fruits, and the protein-based items remained very costly. However, the note-worthy matter is that the prices of the fruits rose by 24.67 per cent every year. The price of the eggs, meat and fish rose by 15.34 per cent. The total inflation rate in India in the month of September of 2011 was at 9.72 per cent. We have the shares of oil companies in the portfolio of our country. We also have companies in the areas of iron ore, copper, platinum, nickel and coal. The per-capita income of a general Indian is on rise. Hence, the demand for the commodity will remain strong going ahead. The energy consumption is going up in the Asian countries as well as the other developing countries. So the fate of India can be predicted in the field of price rise. The food inflation in India is based on wholesale price index (WPI).

I will campaign against UPA in 5 states: Anna

Press Trust Of India

November 04, 2011

First Published: 07:52 IST(4/11/2011) Last Updated: 20:07 IST(4/11/2011)

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Anti-graft crusader Anna Hazare with his team members addressing a press conference at Rajghat in New Delhi.

Changing his stand, Anna Hazare on Friday said he will campaign against Congress in the five poll-bound states if the UPA government fails to get the Jan Lokpal Bill passed in the Winter Session of Parliament. "Let anybody say anything. I will campaign against those who did not bring the

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bill. I will go and campaign and say do not give vote to Congress if the Bill is not passed in the Winter Session of Parliament," he said addressing a press conference shortly after breaking his 19-day 'vow of silence' at Rajghat. Hazare said if the Bill is not passed, he will fast for three days and then will go for a nation-wide tour. Asked if he will campaign against BJP, he said he will not campaign for the party. "I won't campaign for BJP. There is no difference between Congress and BJP," he said. However, Hazare praised Uttarakhand Chief Minister BC Khanduri for bringing a strong Lokayukta Bill and said he will honour the Chief Minister here for his "bold step". On Monday, Hazare had blogged that he would campaign in the five poll-bound states if the bill was not passed but would not name any party. Team Anna had come under attack for campaigning against the Congress during the Hissar Lok Sabha by-poll with critics saying they are indulging in politics though they were claiming to be campaigning against corruption. Accusing the government of trying to "weaken" the Jan Lokpal Bill, Hazare said there was no need for bring separate bills on citizens charter as well as on whistle blowers. "Government's intention is doubtful...The government is trying to weaken the Jan Lokpal Bill by cutting it into pieces. All these provisions were there in the Jan Lokpal Bill," he said. On Team Anna's campaign against Congress in Hissar Lok Sabha bypoll, he said it was because of the campaign that Congress candidate lost his deposit in the election. "We did not want to destabilise the government but wanted to send a strong message that till a strong Lokpal Bill is enacted, our agitation will continue," he said. On restructuring of the core committee, Hazare said the committee will be reconstituted by giving representation to people from all religions, regions, castes and creeds and that people with integrity will be included in it. On various allegations against some of the Team Anna members, he said, "There could be some drawback but that does not mean corruption." Asked about his letter to Prime Minister Manmohan Singh threatening to restart his agitation if the Jan Lokpal Bill was not passed, he said he just wanted to remind the government about the passage of Bill.

Role of youth in politics

Democracy is the buzz word for our political system. But is it really so? Is it democracy that a nation where a majority of population is below 40 elects a majority of people above 60 to power? Are we really satisfied with the way our country is being governed? Should it not bother us that at the age people generally take retirementand rest, our politicians actually become eligible to be at the helm of affairs? Why is it so that people below 50 years are considered as political kids? The country desperately needs some young leaders who personify energy, enthusiasm, morality, and diligence. No doubt we have progressed a lot in the last 62 years but the development pace would have been completely different had some young torchbearers led this process of development. At the time of independence, Gandhi called upon the youth to participate actively in the freedom movement. Young leaders likes Nehru came to his reckoning and led the movement. But this is not the case now. Nowadays we have only a handful of

young leaders like Rahul Gandhi, Sachin Pilot, Varun Gandhi etc, but they are in the political scenario because they belong to influential political families. It is next to impossible to find a young leader with no political family background in the furor of politics. There can be two reasons for this deplorable scene of Indian politics. One may be that the youth today are not interested in actively participating in the political field. They are content with what they are doing and how the country is being governed. But this reason seems to hold no ground seeing the discontent shown by the youngsters towards cases like reservation, Jessica lal murder case etc. The youth of modern India are aware of the problems facing our country and the world at large. Given a chance they would be ready to change the political condition of the country for better. Second reason may be that young people are not given opportunities to prove themselves claiming that they are not equipped with experience to participate actively in the governance of the country. This reason seems to be more logical seeing the monopoly of old leaders in almost all the major political parties of the country. Old people should realize that proper development can take place only when they make way for younger people to take control of the activities. There are few things which need to be clarified. One that youngsters do not mean people who are 20 years old with no experience at all. Youth in this context is meant to refer people in their 30s or early 40s with a good mix of energy and experience. Two, it is not intended to mean that old people should leave the political scene and rest. What is wanted is that they should be there but for guidance because they are treasures of invaluable experience. There are a few things which I would like to suggest. There should be a retirement age for politicians as well which may be around 65 years. There should also be some educational qualification for politicians. How can we give those illiterates the key to our country whom we can not give the key to our house? People with serious criminal background should not be allowed to contest elections. As for the youth of our country, they can contribute in more ways than just contesting elections. Much can be done in areas like educating people, raising awareness about various social ills, and many other areas. We can just wish that the next time we go to vote we find more names of youngsters who can make our country a better place to live in.

OIL FUTURES: Crude Up; Eyes On Europe, US Employment Data

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--Oil prices higher, but volatile due to Greece uncertainty --U.S. October employment data awaited for further clues on the state of economy --Taking $112.65 a barrel level would boost Brent, Petromatrix says By Konstantin Rozhnov Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude-oil futures rose Friday in volatile trade, as uncertainty prevails in the market over the outlook for Europe's sovereign debt crisis, analysts said.

The Greek parliament will hold a confidence vote on the government later, with eyes also on the outcome of ...

Tweet New Delhi: State-owned explorer Oil and Natural Gas Corp. Ltd (ONGC) said net profit rose 60% in the quarter ended September due to high crude oil prices combined with a lower subsidy sharing burden on the sale of fuel by state-owned oil marketing companies (OMCs). Lesser burden: ONGC chairman and managing director Sudhir Vasudeva. By Andrew Caballero-Reynolds/Bloomberg Net profit for the second quarter increased to Rs. 8,642 crore on a 24.4% increase in revenue to Rs. 22,687 crore. The explorers share of subsidizing fuel sales was Rs.5,713 crore. The main reason behind the increase in net profit was a lower subsidy burden in the last quarter and high crude oil prices, Sudhir Vasudeva said on Friday in his first earnings briefing since taking over as chairman and managing director on 3 October. According to the petroleum ministry, the total under-recoveriesthe difference between market price and fuel retail ratesto be borne by OMCs this fiscal are expected to be around Rs. 1.32 trillion, compared with Rs. 78,190 crore last year. The total under-recovery of Indian Oil Corp. Ltd (IOC), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) in the first half of 2011-12 was Rs. 64,900 crore. ONGCs gross and net realization per barrel of crude increased 47.6% and 33.4% to $116.94 and $83.70 per barrel, respectively. Hopefully, oil will remain between $90-100 per barrel, Vasudeva said. The results were announced after market hours. ONGC has cash reserves of Rs. 20,000 crore, of which Rs. 6,000 crore has been kept aside in a site restoration fund that cant be accessed. In another development, Vasudeva said the company expects to get aroundRs. 2,500 crore on account of royalty recovery from Cairn India Ltds main oil asset, block RJ-ON-90/1, in Rajasthan. After tax payment, the amount is expected to be around Rs. 1,900 crore, which will be accounted for in the next quarter. A tripartite agreement is to be signed by ONGC, Cairn Energy Plc. and Vedanta Resources Plc. This follows the issue of a no-objection certificate by ONGC for Vedantas proposed acquisition of a majority stake in Cairn India.

Everything has been sorted out, nothing is pending. The agreement will be signed shortly, Vasudeva said. ONGC is Cairn Indias partner in a joint venture that runs the block. ONGC wanted to be compensated for royalty payments it has been making on the oil produced at this field. Cairn had declined to make these payments. The closure of one of the largest domestic acquisitions in India had been hanging fire with the state-owned firm making the resolution of the royalty dispute a pre condition for approval. The cabinet committee on economic affairs in July approved the acquisition with riders to protect ONGCs interest. The committee suggested that royalty on the Cairn-ONGC oil fields in Rajasthan be treated as cost-recoverable and the ongoing arbitration case on cess be withdrawn.

Green Marketing Claims Have Little Impact on the Purchase Decisions of Men
A new survey from Radius Global Market Research shows that women remain the most receptive to Environmental Responsibility messages.

NEW YORK, Oct. 11, 2011 /PRNewswire via COMTEX/ -- As U.S. marketers continue to increase spending on product development and marketing aimed at environmentally conscious consumers, a new study by leading research firm Radius Global Market Research shows that there's a good chance that green marketing efforts targeting men may be falling on deaf ears. "More and more dollars are being dedicated to green marketing initiatives built to associate brands with environmental responsibility," says Chip Lister, Managing Director of Radius. "But our survey results show that in spite of this increase in spending, the majority of men are not significantly influenced by environmental responsibility when they make a purchase." The Radius Know More(TM) internet panel survey asked U.S. consumers to rate brand attributes across a broad range of products and services in terms of the amount of influence they had on their decision to purchase. Results show that when it comes to environmental responsibility, women consumers are much more receptive to marketing messages. A brand's reputation for being "green" matters nearly twice as much to women as it does to men. Key differences between genders don't end with environmental responsibility.

Women place importance on a wider range of brand values than do men. Both men and women ranked the same three issues as having the most influence over purchases: (1) Value; (2) Quality; and (3) Trust. After that, however, men appear to be influenced little by any other brand values. "We found that the value men and women place on environmental responsibility is part of a much broader pattern," says Lister. "Men are influenced by a much smaller set of brand attributes when they make purchase decisions. Marketers that stray too far from these core attributes run the risk of not being heard. By contrast women seem readily affected in their brand decisions by issues that could almost be considered 'bigger', certainly well outside the more direct or tangible deliverables offered by the brand/product."

Greek crisis demonstrates that Europe has no clothes

REUTERS/Yiorgos Karahalis Greek work ethic: Hands up everyone who think Germany should keep paying our bills

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Araminta Wordsworth Nov 4, 2011 1:07 PM ET

Full Comments Araminta Wordsworth brings you a daily round-up of quality punditry from across the globe. Today: The eurozone crisis is looking increasingly like a remake of The Emperors New Clothes, with Greece as the little boy who dares tell it like it is. George Papandreous suggestion Greeks should get to vote on the rescue package was met with a hysterical response from Europes leaders. If the euro explodes, Europe would explode, claimed Nicolas Sarkozy, the French President. Its the guarantee of peace in a continent where there were terrible wars. [W]e are not going to jeopardize this great project of unity. That is our priority, insisted Angela Merkel, the German Chancellor. We made Papandreou aware of the fact that his behaviour is disloyal, Jean-Claude Juncker, head of the 17-member Euro Group, sounding if the Greek Prime Minister was a small boy to whipped and sent to bed without any supper instead of the head of a sovereign nation. They also threatened him with enforced bankruptcy. Which is a somewhat hollow threat as it is what he faces if his country leaves the euro and something markets have already discounted. Reporting for Der Spiegel, Stefan Simons says the remarks exposes the leaders self-interest. The comments, in essence, represented the breaking of a taboo. For the first time, the stability and security of the euro were placed above Greeces ongoing membership in the euro zone. The agreements reached in Brussels shall not be tinkered with. And should Greeks vote no in the referendum, the county could exit the eurozone. For Janet Daley at The Daily Telegraph, the incident has descended high drama into farce. The attempt to bludgeon the Greeks into submission is becoming more and more bizarre. [On Thursday], the leaders of the EU (which is to say, France and Germany) and the European Commission were declaring that there was absolutely, positively no question of Greece leaving the euro ever. Now they are threatening to eject it from the eurozone (and the EU) as an act of their own will if the Greeks do not knuckle under and accept the dictation of their betters. I dont know which of these stances is the more alarming. The original argument (that Greece could never escape from the single currency, whatever its people or their elected government wanted) seemed to turn a sovereign nation into something like a Soviet satellite held in bondage to a superior power against its will. The new proposal to throw Greece out of the EU if it defies European authority looks like desperate vengeance. The European dream is transmogrifying into something very nasty indeed. Ron Derby at the South African daily newspaper Business Day wishes for a truth serum. Can you imagine the thoughts behind the forced smiles of the major decision makers in the European sovereign debt crisis? Germanys Angela Merkel and Frances Nicolas Sarkozy would be the ones most cherished right now. Their thoughts may very well confirm what markets the closest thing we have to a truth

serum have been telling us for a while. The crisis is no longer about Greece; its really the threat of contagion to much bigger economies that is at the centre of all concerns. So maybe we should leave the Greeks to their domestic politics, and focus on what the eurozone leaders do to create a firewall around Italy and Spain. The European Central Bank may have to leave its independence at the door this time around. Or perhaps the French and German leaders are cursing their predecessors for not doing their job properly in forming this marriage. At The New York Times, Floyd Norris believes this is literally a make or break moment for Europe. The fundamental nature of European governance is about to change. Either a large part of the Continent will move much closer to a federal government, with common fiscal policies and a substantial loss of sovereignty for many nations, or it will spin apart, with possibly severe economic and financial consequences This week, it appeared that the prospect that scared European leaders the most was the spectre of democracy. When the Greek prime minister, George A. Papandreou, proposed a referendum on whether Greece would go along with the agreement reached at the European summit meeting last week one that calls for more austerity and that polls say is unpopular with most Greeks much of Europe reacted with shock and alarm. How dare he do that? Jeremy Warner, another Daily Telegraph commentator, suggests everyone is focusing on the wrong crisis. Something potentially much more ominous [is] happening in Rome, where parliamentarians are refusing to implement the reform agenda in an attempt to force Silvio Berlusconi out of power. Insurrection against the penalties of the single currency is by no means confined to Greece. Berlusconi appears as much dead in the water as Papandreou. Greece doesnt matter; the eurozone economy could cope with a hard Greek default. In any case, markets have already largely discounted it. But Italy, the eurozones third largest economy as well as the worlds third largest sovereign bond market, is a different matter. The euro could not survive an Italian default and/or exit.