Saturday, January 16, 2010

Inflation at 7.31%. Money policy may b tightened.

steel & zinc prices hiked just like sugar, potato prices to take inflation to 7.31%. Bad monsoon-> agri products price hike. This hike also affecting other commodity prices. Cheap money policy during recession is fuelling demand for cement, cars & steel. Subbarao is expected to tighten money supply by increasing bank reserve ratios.
Food price increase-> processed food prices increase
Petroleum products UP->transportation cost UP->industrial products price UP

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