India Inflation Soars to 10%
Economics / India Mar 15, 2010 - 10:52 AM GMTThe Indian inflation rate for February virtually hit the 10% double digit level by coming in at 9.89%, significantly above market expectations and the RBI's 8.5% target as another example of the worldwide manifestation of the Inflation Mega-trend which has already seen UK inflation double from 1.9% to 3.5% in a little over 2 months.
The reaction to the above trend inflation will be for the Indian central bank to increase interest rates at their next rate setting meeting in an attempt to prevent a wage price spiral from taking hold. The specific inflationary risks to India are covered in the Inflation Mega-trend Ebook Page 58.
Only last week, China's inflation rate jumped far higher than academic economist expectations to stand at 2.7% for February. This is just another small step in the manifestation of Inflation Mega-Trend which the ebook covers at length, which also includes a section on China eventually exporting their inflation abroad (Inflation Mega-Trend Ebook Page 55). An overheating chinese economy pumped up on stimulus steroids that is not allowing its currency to appreciate was expected to experience a surge in inflation sooner rather than later.
The full implications of the unfolding Inflation Mega-Trend including forecasts trends for major markets for many years are contained within the NEW Inflation Mega-trend ebook that I am making available for FREE, which includes analysis and precise forecasts for:
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